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Sterling hits 22-month high versus euro edges up vs dollar

Tuesday,   11-Jun-2024   04:13 PM (IST)

Sterling hit a 22-month high versus the euro after a sharp rise the day before and was roughly unchanged against the dollar on Wednesday as investors await U.S. inflation data and the outcome of the Federal Reserve policy meeting on Wednesday. The single currency dropped on Monday after the gains of eurosceptics in the elections for the European Parliament and France called an election. With a potential right-wing victory in France, the political landscape could pose significant challenges to the European Union's efforts to deepen integration, weakening the euro. Britain's labour market showed more signs of cooling in April with a rise in the unemployment rate but failed to trigger a significant price action of the British currency. The dollar hovered near a one-month peak against the euro as traders braced for U.S. data and the Fed rates forecasts. Sterling rose 0.25% to 84.33 pence per euro, its highest since August 2022. It was up 0.05% at $1.2738. Money markets discounted a 40% chance of a 25 basis points BoE rate cut in August while more than fully pricing the same move in November.