According to Jinshi, interest rate traders are increasingly confident that the easing measures of the Federal Reserve and the Bank of England will be agreed by the end of this year. The money market expects that both the Bank of England and the Federal Reserve will cut interest rates at least once this year, by 25 basis points. Since December last year, the pound has been trading in a range of $1.25-1.27 against the US dollar. However, as the British general election approaches, implied volatility has risen again, and interest rate dynamics may help the pound rise to a year-high above $1.28. This is because traders have reduced their bets on when the Bank of England will begin to ease policy.