Sterling is stronger now than it has been in more than a year. Even though we're still blaming Britain's target-beating inflation rate on the weakness of the pound, the UK currency is now nearly as strong as it was before the referendum on EU membership.
While the referendum is usually cited as the reason behind much of sterling's weak performance, the currency's path lower started a long time before the night of the Brexit vote.
Examining the sterling-dollar chart over five years reveals material weakness in the pound began two years in advance of June 2016.
By the end of May 2014 the pound was standing at a near six-year high around the $1.71 mark against the dollar, buoyed by growing signs of economic green shoots and expectations of impending monetary tightening.
The monetary tightening didn't come till much later and concerns over the likely economic impact of a victory for the Brexit campaign added to the political uncertainties already beginning to surround David Cameron's coalition government a year ahead of the 2015 General Election.
In May 2013, Cameron had signed into effect the EU Referendum Bill that promised a national vote on EU membership before the end of 2017, should Cameron's Conservative Party win the General Election.
So, let's come back to the present. In 2017, sterling has put in its first year of growth after three successive years of losses. Since 31 December 2016, the pound has risen 8.7% against the dollar, but remains 2.3% lower versus the euro.
Let's first mention those benefitting from the weaker pound. Those short selling the UK currency did very nicely between June 2014 and January this year - notwithstanding a couple of upward blips along the way.
Exporters, however, were the best served and the impact of sterling's weakness can still be seen in manufacturing purchasing manager (PMI) surveys.
"On its current course manufacturing production is rising at a quarterly rate approaching 2%, providing a real boost to the pace of broader economic expansion," says Rob Dobson at IHS Markit who compiles the PMI surveys.
While the pound was weaker, cost pressures have been allowed to build. Manufacturers have reported steadily-rising costs of raw materials as the weak exchange rate fostered higher import costs.
As inflation increased during 2017 - to its November peak of 3.1% - expectations of interest rate rises buoyed the pound. The Bank of England finally made its move in November, lifting the base rate from its record low of 0.25% to 0.5%.
Yet most analysts expect inflationary effects to diminish during next year - so what of sterling? Can it maintain support if the central bank no longer sees the need for higher interest rates?
Much will depend on economic growth, and the forecasts for this aren't spectacular.
Forecasts: Pantheon Macroeconomics
"Both the MPC and the markets were caught out by how quickly inflation picked up this year, and we believe they'll be caught out by how quickly if falls in 2018," says Pantheon Economics analyst Samuel Tombs.
"Core inflation should converge with the G7 average once the boost from sterling's depreciation has fully worked through, allowing the BoE to 'normalise' policy at an incremental rate."
Pantheon's forecasts see the pound at about $1.38 vs the dollar by December 2018 - a rise of nearly 3% over the year.
Capital Economics is less optimistic about a continuation of the sterling rebound against the dollar.
"We expect relative interest rates to be the key driver again in 2018, boosting the dollar to $1.30." That would be a near-3% decrease for sterling over the year.
Berenberg analyst Kallum Pickering expects two interest rate hikes from the BoE in 2018.
He says: "The economy is set to grow at close to its potential rate over the medium-term and our base case is consistent with the Bank's guidance for 'gradual and limited' rate hikes."
Berenberg has raised its outlook for the UK annual growth rate to 1.8% in 2018 from a previous 1.6% and to 1.9% in 2019 from a prior 1.7%.
It didn't give a year-end forecast for sterling, but said this scenario and progression in Brexit trade talks would be consistent for further gains in the UK currency against the dollar in 2018.
The most optimistic analysis came from Phil McHugh, senior market analyst at Currencies Direct, who believes sterling could hit a high next year of $1.50 if a Brexit deal is reached.
"Risks abound in 2018, but the rosiest outlook for the pound is surely the achievement of a mutually agreeable Brexit deal," he says.
"If meaningful progress is made on the divorce bill, trade and custom deals, uncertainty will decrease and the pound stands to rally sharply."
No deal sees the pound drop back to $1.20 against the dollar and below €1.10 versus the euro.
Much can also depend on global outcomes in 2018. Sterling cannot possibly benefit if North Korean and US sabre rattling intensifies - look to the global havens of Japanese yen, Swiss franc, and through Treasuries, the dollar.
Again, the pound could be a victim of any dollar rally that follows a successful conclusion through Congress of President Trump's tax bill. If, however, it emerges a heavily watered-down version of the original, the pound's rally is likely to hold its course.
It's much harder to forecast what will happen between the pound and the euro in 2018. While European delegates to Brexit talks have held the upper hand, the euro has remained stronger against sterling this year.
Any subsequent ground made in negotiations by Britain's delegates could see the euro's grip loosen over the coming months. Interest rate differentials and the inflationary outlook could also start to play a part at this point.