Pound Leaps

The pound soared over 250 bps to as high as 1.4600 on the back of the increasing risk appetite as it erased the majority of the losses it suffered following the BoE’s quarterly inflation report.

Indeed, the central bank signaling further rate cuts and the possibility of quantitative easing had sunk Sterling to as low as 1.4150.

The potential of more coordinated efforts to revive the global economy coming from the G-7 meeting has fueled the bullish sterling sentiment. However, if the current every man for themselves mentality continues post summit then we could see recent gains reversed.