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Pound to Dollar Week Ahead Forecast: Yield Spike Fails to Sustain GBP Rally

The Pound to Dollar exchange rate (GBP/USD) fell back toward 1.3300 after a sharp post-BoE rally, as a surge in UK bond yields and renewed energy price shocks triggered a fresh bout of Sterling volatility. While higher yields initially supported the Pound, a sharp sell-off in gilts and deteriorating risk sentiment have raised concerns that tightening financial conditions could weigh heavily on the UK economy and limit GBP/USD upside. [...]