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The pound is leading the pack of G10 currencies so far in 2018, having broken through $1.40. It is also gaining against the yen, but treading water versus the euro.
The pound is now just under the $1.41 level against the dollar, having regained half the dip on the back of the Brexit vote in June 2016.
Will GBP/USD reach $1.50?
Martin Arnold, FX and macro strategist at ETF Securities, is cautious about a GBP/USD climb to $1.50, saying that if the softer retail sales numbers follow through into gross domestic product (GDP) figures, Mark Carney (the Bank of England governor) may be reluctant to be more hawkish, which would bring downward pressure on sterling.