Institution: Pound may benefit from weak dollar but may face pressure against Euro.

Convera strategist George Vesey pointed out that even without a strong catalyst from the UK, the pound against the weak US dollar could still rise to the 1.40 level. The short-term rebound of the dollar after the Fed's decision actually highlights its significantly weakening momentum. However, the pound is weak against other G10 currencies. If the Bank of England cuts interest rates more than expected, the pound against the euro may further decline. Furthermore, fiscal concerns before the May local elections in the UK could also weaken the pound against the euro.