From a currency viewpoint, one of the biggest surprises over the first half of 2023 has been the strength of sterling.
One reason for sterling’s strong performance year-to-date has been the macro backdrop where the UK economy has proved to be more resilient than had been expected.
At the same time, over the last number of months, sterling has benefitted from widening interest rate differentials, with the BoE continuing to hike interest rates.
However, the reaction of sterling to the most recent Bank of England meeting and policy announcement in June is noteworthy.
