Updated

The British pound has been one of the G10's strongest performers this year, buoyed by a resilient UK economy and expectations of Bank of England rate hikes. Analysts now caution that the currency's momentum could stall as the BOE signals a more dovish stance heading into a critical government budget. Foreign exchange strategists say sterling's fate is increasingly tied to fiscal policy risk as well as monetary policy, with the upcoming budget seen as a potential catalyst for volatility. The shift in tone from the central bank has prompted some investors to reassess bullish pound positions built earlier in the year.