Jonathan Webb, head of FX strategy at Jefferies Bache, says that sterling is very much "a growth story" and advises being short euro/sterling but long sterling/Swiss franc.
Global currency markets trod water ahead of interest rate decisions in Britain and the euro zone on Thursday.
The yen gained on Wednesday, as struggles in stock markets and the emerging markets forced investors to seek safe-haven currencies.
The Australian dollar surged almost two percent on Tuesday after moves from the country's central bank dropped.
The euro was soft on Monday as investors thought it more likely the European Central Bank would have to ease policy to combat slowing inflation.
The euro fell as soft euro zone inflation data rekindled concerns the ECB may have to act to combat deflation, while the dollar gained.
The dollar rose against a basket of currencies on Thursday after data showed the US economy produced solid growth in the fourth quarter.
Several analysts see an upside for Russia to the emerging market rout, seeing it as "easy money" for the government's coffers.
The yen rose against the dollar, suggesting emergency action to stabilize Turkey would not be enough to quell nerves over emerging markets.
If Scotland becomes independent and keeps the British pound, the Bank of England would "simply implement whatever monetary arrangements" were negotiated, says Mark Carney, governor at the Bank of England.
The dollar regained a firmer footing against the yen on Tuesday as investors took a breather from a sell-off of stocks and emerging market assets.
Safe-haven currencies like the yen and the Swiss franc were much in demand on Monday as an emerging markets sell-off continued.
The yen, Swiss franc and euro charged higher amid worries about a China slowdown and turmoil in some emerging markets.
Sterling rose to an almost three-year high against the dollar on growing expectations that the BoE will raise interest rates sooner.
The dollar slipped on Wednesday, hurt by gains in sterling and the Australian currency.
The dollar rose versus the yen on Tuesday, helped by renewed talk that the U.S. Federal Reserve may announce a further taper next week.
The euro recovered slightly from a two-month low against the dollar on Monday, helped by higher short-term market interest rates.
The Australian dollar tumbled to its lowest level since mid-2010 against a firmer U.S. dollar on Thursday.
The yen and Australian dollar nursed heavy losses early on Wednesday, having suffered a swift turnaround in fortunes as a shakeout in long dollar positions came to an abrupt end following upbeat U.S. retail sales data.
The U.S. dollar's decline to multi-week lows against the Japanese yen following Friday's shockingly weak U.S. jobs number represents just a temporary setback for the greenback, according to CNBC's latest poll.