Risk sentiment deteriorating, pound against the euro could fall.

Danish bank analyst Kirstine Kundby-Nielsen stated in a research report that the continued uncertainty surrounding US tariffs is suppressing risk appetite, making the British Pound likely to weaken against the Euro. "In our view, an investment environment characterized by escalating uncertainty, widening credit spreads, and a negative environment correlated with the US dollar is favorable for a weaker British Pound." The UK has a large current account deficit, making the Pound vulnerable to shocks when capital inflows weaken. She stated that in the context of deteriorating global risk sentiment, the Pound faces the risk of falling against the Euro. Danish Bank predicts that in the next six months, the Euro to Pound exchange rate will rise to 0.87. The Euro/Pound has risen by 0.1% to 0.8418 Pound.