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Pound outlook shaped by rate expectations and high UK gilt yields

United Kingdom
First seen: Sep 7, 2026, 8:01 AM UTCUpdated: Sep 7, 2026, 8:01 AM UTC

The pound is recovering against the euro while markets assess expectations for a possible September rate hike. Nineteen-year-high gilt yields are adding pressure to the pound-dollar outlook.

Changing rate expectations and elevated government borrowing costs can affect currency markets and UK financing conditions.

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