ING Analyst: Sterling May Fall Further Against Euro if BoE Holds Rates on Thursday

According to ING analyst Francesco Pesole, on July 27, the Bank of England is likely to maintain interest rates unchanged on Thursday, which could extend sterling's decline against the euro. Pesole stated that given the BoE is unlikely to raise rates this year, the pound faces near-term downside risks as markets have already priced in rate hikes.

Markets are currently pricing in 37 basis points of rate increases by year-end, according to the report.