LONDON—Sterling rose on Tuesday supported by improved risk sentiment as Rishi Sunak prepared to become Britain’s prime minister, while the euro steadied ahead of an expected rate hike by the European Central Bank (ECB) on Thursday.
The U.S. dollar edged up but was not far from its lowest level in October amid signs Federal Reserve rate hikes are slowing the world’s biggest economy.
Sunak will become Britain’s next prime minister, Downing Street said on Monday. Sunak was due to meet King Charles on Tuesday morning before speaking outside No. 10 Downing Street.
British government bonds recovered further and the 20-year gilt returned to a level last seen on Sept. 23, the day former Prime Minister Liz Truss’s economic agenda triggered a collapse in sterling assets….