According to reports from Jin Ten Data, Convera analyst George Vessey pointed out that the pound is expected to resume its upward trend after retreating from a three-year high. The dollar's rebound may be short-lived after a U.S. federal court ruled to block the Trump administration's comprehensive tariff policy.
The rise in political risk premium and uncertainty surrounding rulings may exacerbate the rationale for selling dollar assets. Positive dynamics in UK trade, resilient economic data, and the Bank of England's cautious stance on interest rate cuts support the pound.
Vessey believes that the pound to dollar exchange rate could rise to 1.40 later this year, especially in the context of U.S. policy uncertainty leading investors to sell dollar assets.