Managers have expressed confidence in the performance of sterling and its future potential, but the uncertainty surrounding the UK and global economies, as well as the upcoming general election, could pose headwinds to the asset's performance.
Lauren Van Biljon, portfolio manager and head of rates and FX for the global fixed income team at Allspring Global Investments, noted sterling's "strong performance" in 2024 already, making gains against both the euro and Japanese yen. Deep Dive: Investors in money market funds at risk of missing out on next fixed income rally Sterling has also been "holding its own" against the resurgence of the US dollar, she said, the only currency that has outperformed it among G10 economies. Abbas Owainati, head of asset allocation at Charles Stanley, said this was down to a "massive" rates re...
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