Interest rates are at their peak, but it's probably going to be some time before we see them coming down, probably another six months or so, ... an unhelpful factor...but is probably at its worst in terms of annual inflation now.
People are keen to see more evidence of rates going up in Europe and further comments are helping the euro bulls. I don't see a big move in the euro coming yet though, while U.S. rates are still this high.
The M&A inflows have already been significant and I think there is potential for a lot more to come because the UK equity market is among the largest, relative to GDP, and among the cheapest at the moment.
Sentiment is generally negative for the dollar even in the face of good news. The market is looking through the expected rate hikes. If you take away the interest rate support for the dollar... and the structural problem is still there, the trend for the dollar is downwards.