Sterling is the clear outperformer today, buoyed by the dual tailwinds of geopolitical relief and shifting rate expectations. Yesterday’s rise in headline inflation to 3.4% has effectively taken an immediate Bank of England rate cut off the table, and with the threat of US tariffs now removed, investors are piling back into the pound. The currency is trading sharply higher against the dollar and has extended its gains against the euro.
GBP/USD: the past year
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