Sterling Falls Ahead of BOE Decision, U.K. Special Election Results -- Market Talk

Dow Jones
Jun 18

0903 GMT - Sterling falls to a 10-week low against the dollar and a three-week low against the euro as investors brace for the Bank of England's policy decision and a U.K. special election Thursday. The BOE is expected to leave rates unchanged but the focus is on whether it will endorse market bets for a rate rise by year-end. Given recent soft data and lower-than-anticipated inflation, the BOE is likely push back against rate-rise expectations, Monex Europe analysts say in a note. Meanwhile, the political risk premium looks underpriced, they say. Thursday's special election could lead to a leadership challenge for Prime Minster Keir Starmer. Sterling falls as low as $1.3239. The euro rises to a high of 0.8671 pounds. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

June 18, 2026 05:03 ET (09:03 GMT)

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