CMC Markets: sterling could hit 1.30 in the coming months

Interest rate differentials could narrow against the US dollar, meaning the pound may break higher

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Bouncing back: despite its precipitous fall in value since the referendum, sterling may soon make some of those losses back

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After months of decline since the UK’s referendum on its European Union membership, the pound could head higher against the dollar in the coming months, says Michael Hewson, chief market analyst at CMC Markets, which topped last week’s one-week currency forecast table.

“The US Federal Reserve could well look at raising rates once more this year, but I think too much is priced in with respect to the Trump trade. Interest rate differentials could well narrow agains