February 4, 2026 – London The British pound climbed to a five-month high against the euro Wednesday as investors positioned themselves ahead of the Bank of England’s policy announcement.
Currency traders cited optimism about economic resilience and expectations that interest rates may remain steady. Sterling rose nearly 1% in early trading.
Economists caution that inflationary pressures persist despite growth signals. “Markets are pricing stability,” said analyst Rachel Moore.
Exporters expressed concern over currency strength, while holidaymakers welcomed improved exchange rates.
The Bank of England’s decision Thursday could determine whether sterling sustains its rally.
