Sterling's run to new session highs by 1.3984, hints that the dollar and the pound might be running on parallel tracks with regard to rate and recovery expectations.
Currency moves were muted on Thursday as markets awaited comments by Fed Chair Jerome Powell at 12:05 PM EST on expectations that he would address the recent rise in U.S. long-term rates.
Though sterling is 2-1/2-big figures below its recent trend high, UK and U.S. rates have been following a similar trajectory.
The rise in UK growth expectations, and diminished outlook for UK negative rates, has been a key factor in sterling's rise from early December 2020 lows by 1.31.
Powell statements are likely to have hurt sterling less as a walk-back on U.S. and global rates by Powell would remove only one catalyst of its recent strength.
Upbeat COVID and post-Brexit recovery tones are likely to maintain GBP's relative strength versus the USD and EUR as long as recent UK successes fighting the virus and re-igniting UK growth are maintained.
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