The British Pound has more fuel in its tank to drive outperformance against the Euro and Dollar over the medium term.
Although financial markets are positioned for further gains by the Pound, business leaders have sent the first clear warning signal that the outlook is dimming.
Prime Minister Keir Starmer risks stalling UK growth and the British Pound's impressive run by killing sentiment and enacting taxes that specifically target the growth sectors of the economy.
Pound Sterling holds onto positive momentum thanks to constructive market sentiment and Friday's contrasting speeches from Andrew Bailey and Jerome Powell. However, we think further outperformance will be more muted in the near term.