0908 GMT - Sterling could fall if the Bank of England keeps interest rates steady Thursday and dampens expectations for rate rises later this year, Monex Europe analysts say in a note. The market is fully pricing a rate rise by November but this looks excessive, they say. "We expect a pushback from BOE Governor Andrew Bailey, which if realized, should pose a headwind to sterling alongside political developments." Greater fiscal premium should be attached to new Prime Minister Andy Burnham despite its pledges of fiscal discipline, they say. The euro falls 0.1% to 0.8547 pounds after reaching a three-week high of 0.8559 Monday, according to LSEG. Sterling rises 0.1% to $1.3299 after hitting a near four-week low of $1.3278 overnight. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 05:08 ET (09:08 GMT)

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