Market Outlook: Sterling Loses Some of Its Shine

Forex - The pound is no longer the best-performing G-10 currency in 2024, having been pushed to second place by the US dollar.
Rabobank analysts indicated that speculators have decreased their long positions or bets on the appreciation of the UK currency.
Recently, the pound reached its highest level against the euro in two and a half years, fueled by expectations that relatively high inflation would limit the Bank of England's ability to cut interest rates. Last week, the BOE did not change interest rates; however, it was surprising that a third of the policymakers voted in favor of a rate cut.
The pound has gained 4.5% against the euro this year, while it has depreciated by 1.6% against the dollar. The DXY dollar index has risen by 6.8% so far this year.