Pound Risks Lagging the Euro in 2023 as Central Banks Diverge
- Markets mispricing rate hikes favors euro over pound: RBC
- Euro-sterling could rise to level seen in UK mini-budget chaos
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The pound has slid against the euro this year and it risks flopping again in 2023.
The UK currency is under pressure from the Bank of England turning more cautious on further interest-rate hikes, just as the European Central Bank amps up its rhetoric on the need for more action to tame inflation. Analysts including from Royal Bank of Canada and Bank of New York Mellon see the euro rising against sterling.