The British pound has surged to its strongest level since August 2022 against the euro and reached a multi-year high against other major currencies, including pushing above 200 against the Japanese yen. This rise is driven by traders' expectations that the Bank of England (BOE) will maintain higher interest rates for a longer period compared to its peers, including the European Central Bank (ECB). The pound also hit a fresh two-month high against the US dollar ahead of upcoming inflation data. Market sentiment has turned bullish on sterling as the BOE is increasingly expected to trail the ECB in lowering interest rates.