According to Jinshi data reports, Convera strategist George Vessey pointed out that the pound is facing temporary selling pressure due to month-end portfolio rebalancing. Nevertheless, Vessey believes that the pound may soon regain upward momentum and is expected to rise to 1.40 by the end of the year.
This expectation is based on the continued 'sell-off dollar trade' due to the market's declining confidence in U.S. policies and a deteriorating economic outlook. Additionally, the pound's appreciation requires the UK economy to remain resilient, and the Bank of England maintains a cautious stance on interest rate cuts.