Pound's Prospects Look Better Than Fed Week Would Normally Imply
- Sterling may advance to $1.54 by end of next week: Nordea
- U.K. inflation forecast to turn positive; wages seen growing
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The pound is shaping up to approach the year-end on a positive note versus the dollar, even with the Federal Reserve set to raise interest rates for the first time in almost a decade.
A string of reports are due to show an improvement in the U.K. economy next week with, crucially, inflation set to turn positive, according to analysts surveyed by Bloomberg. Given the Fed’s repeated hints that it will raise rates at its Dec. 15-16 meeting, the prospect is largely priced into markets. Sterling has risen against its U.S. counterpart for the past two weeks as the final U.S. policy meeting of 2015 approaches.