1352 GMT - Sterling could fall if the Bank of England sounds cautious about raising interest rates and a U.K. special election exacerbates political concerns, Rabobank's Jane Foley says in a note. Wednesday's below-forecast U.K. inflation data fuel the debate about whether the BOE will extend its "wait and see" approach on Thursday, she says. Andy Burnham could challenge Prime Minister Keir Starmer's leadership if he wins Thursday's special election. His left-leaning stance and the potential for fiscally-conservative Treasury chief Rachel Reeves to be replaced could worry the U.K. government bond market and "unsettle the pound." Sterling drops 0.1% to $1.3414 and Rabobank sees the risk of it falling to $1.33 in coming months. The euro rises 0.1% to 0.8647 pounds. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
June 17, 2026 09:52 ET (13:52 GMT)
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