Current interest rates:
= Positive carry-trade.
Again, it all depends. Let's see how it plays out I guess!
Happy New Year!
The FED could well re-consider their 'expected' rate hikes and do nothing in the first half of 2019. They'd be balancing probability of catastrophic meltdown, and having to support the PPT - against the other probability of slower meltdown by notching up interest rates at a slower rate. There's a lot of noise in the 'equation'.
For sure, they may not do anything in the first half of 2019. We will start seeing the effects of the Interest Rate hikes from 2018 take effect, but that doesn't negate the fact that the US.Dollar is fundamentally in a better position than Sterling.
The UK Government is a joke.