Cable’s recovery from its multi-month lows printed in December continues with the pair pushing ever higher and back to levels last seen over two months ago. The 15 basis point interest rate hike in late December and the government’s slightly more lenient attitude towards omicron lockdown measures have given Sterling room to flex its muscles. With another UK interest rate hike likely at the next BoE meeting in early February, and with PM Boris Johnson keen to keep the UK economy open for as long as possible, the short-to-medium term outlook for Sterling remains positive.
