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Why we think the rally in sterling will continue

The pound has performed better than all other G10 currencies so far in 2021 (see Chart 1), rising from $1.36 at the start of January to almost a three-year high of $1.41 now. We expect the strength of sterling against the US dollar to continue and have revised up our end-2021 forecast of $1.40 to $1.45.

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