TD Securities Expects US Dollar to Rebound in Q1, GBP/USD Upside May Be Limited

The TD Securities report points out that the rebound of the US dollar may bring an end to the recent strong performance of GBP/USD. Analysts stated that the previous rise in the pound was mainly due to a broad sell-off of the US dollar, and the first quarter is usually a period when US data performs strongly, so the US dollar may rebound against the pound. On Thursday, the Bank of England decided to keep interest rates unchanged by a narrow margin, and concerns in the market about challenges to UK Prime Minister Starmer's leadership have intensified. As a result, GBP/USD fell by 0.7% to 1.3548.