Pound to Dollar Forecast Today: GBP Retakes $1.24 vs USD Ahead of PMIs

January 24, 2025 - Written by David Woodsmith

STORY LINK Pound to Dollar Forecast Today: GBP Retakes $1.24 vs USD Ahead of PMIs

The Pound Sterling (GBP) advanced to $1.24 handle against the US Dollar on Friday ahead of the latest PMI data.

At the time of writing, Pound US Dollar exchange rate (GBP/USD) was trading at approximately $1.24.

Sterling was mostly rangebound against the US currency on Thursday amid thin market trading conditions.

On Thursday, the Pound (GBP) had a tough time gaining traction against most of its counterparts, as the lack of new domestic data left exchange rates trading without a clear trajectory.

Without fresh data to guide the market, the Pound remained susceptible to ongoing concerns about the UK's fiscal stability.

On Wednesday, the UK's latest borrowing figures came in much higher than anticipated, dealing a blow to the Pound.

With little new information on Thursday, the currency was left to recover from Wednesday's setback, struggling to attract significant investor interest.

On Thursday, the US Dollar (USD) maintained its position against most of its counterparts, following a sell-off on Wednesday.

The 'Greenback' lost ground as markets reacted positively to the news that President Donald Trump might postpone his plans to implement certain tariff proposals.

While this news didn't significantly impact USD exchange rates into Thursday, the American currency also failed to gain strength, leading to mostly sideways trading due to a lack of economic catalysts.

Looking ahead, the main driver of movement for the Pound US Dollar exchange rate on Friday will likely be the release of the preliminary PMI readings for January from both the UK and the US.

For the Pound, if the UK’s crucial services sector reports another downturn this month, it could dampen Sterling’s performance at the end of the week.

Regarding the US Dollar, while the country’s services index is expected to remain in expansion territory (a reading above 50), the latest manufacturing index could weaken the ‘Greenback’ if it confirms another month of contraction.

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TAGS: Pound Dollar Forecasts