TD Securities: GBP/USD Rally May End as USD Rebounds

TD Securities reported that the recent strong performance of the British pound against the U.S. dollar (GBP/USD) may be coming to an end, primarily driven by a rebound in the U.S. dollar. According to Jin10, analysts noted that the previous rise of the pound against the dollar was largely due to a broad sell-off of the dollar. Seasonally, the first quarter is typically a period of strong U.S. data performance, which could lead to a rebound of the dollar against the pound. Following the Bank of England's narrow vote to maintain interest rates on Thursday, coupled with renewed market concerns over potential leadership challenges facing UK Prime Minister Keir Starmer, the GBP/USD fell by 0.7% to 1.3548.