Sterling has gained 2.3pc against the dollar this year, ahead of all others in the so-called G10 group of major economies. This means that the pound has surged to become the best performing currency among developed economies this year. The Bank of England is expected to carry on raising interest rates. Over the last month, the pound has gained 3% against the dollar - surpassing even all currencies in emerging economies - and flying in the face of skepticism about the outlook for the UK economy.
Traders are betting there is a 75% chance that interest rates will increase by 0.25 percentage points in May. They are pricing in a 52% chance of another hike of the same amount in June.
Source: fpcfreshtalkdaily.co.uk