For a currency that’s taken quite a beating in recent years, things couldn’t look better for sterling.
The British currency soared against the U.S. dollar and the euro on Wednesday after the Bank of England (BoE) delivered a surprisingly upbeat economic outlook. And currency analysts forecast further gains as markets position for higher interest rates from the U.K.
“We’re already pricing in a lot of potential hiking from the Bank of England,” Sebastien Galy, senior currency strategist at Societe Generale told CNBC’s Asia Squawk Box. “Some of the growth is slightly unhealthy, but a lot of the pessimism that was there in the U.K. many months ago has reverted so people are bullish,” he added.