1357 GMT - Sterling could weaken later this year as the U.K. fiscal situation remains tense and the Bank of England is unlikely to raise interest rates, Commerzbank's Michael Pfister says in a note. New U.K. Prime Minister Andy Burnham must achieve the "virtually impossible" task of implementing growth-friendly policies without placing greater strain on the budget, he says. Fiscal risks are likely to rise again from September ahead of the next budget, he says. Meanwhile, rate cuts are more likely than rate rises if the U.S.-Iran conflict is over by the end of September and the labor market remains weak, he says. Commerzbank expects the euro to rise to 0.88 pounds by December from 0.8531 currently. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 23, 2026 09:57 ET (13:57 GMT)

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