The pound is set to resume its run as one of this year’s best-performing currencies despite the UK economy’s slide into recession, according to market-watchers from Bank of America to Credit Agricole SA.
They point to economic green shoots and an inflation rate double the Bank of England’s target, bolstering the case for interest rates to be held high for longer. Against this backdrop, they argue sterling will reverse its recent weakness.
BofA calls sterling the ‘dollar of Europe’ as it lifts targets.
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