The Pound to Dollar News: GBP/USD Quiet on US President's Day

February 17, 2025 - Written by David Woodsmith

STORY LINK The Pound to Dollar News: GBP/USD Quiet on US President's Day

The Pound Dollar (GBP/USD) exchange rate was steady at the start of this week’s session, with US markets closed for President’s Day and investors awaiting significant UK data later in the week.

At the time of writing, GBP/USD was trading at $1.2596, virtually unchanged from its opening level.

The Pound (GBP) remained relatively quiet on Monday as investors awaited significant UK economic data later in the week.

The upcoming labour market overview and consumer price index reports are expected to heavily influence Bank of England (BoE) monetary policy decisions, with investors opting to wait on the sidelines ahead of these releases.

Additionally, the UK’s retail sales figures and PMI surveys due to be released on Friday contributed to the subdued sentiment surrounding GBP at the beginning of the week.

Meanwhile, the US Dollar (USD) was relatively quiet on Monday due to the President’s Day holiday in the United States.

The closure of US markets resulted in thin trading conditions, which dampened USD's movement.

Looking ahead, the Pound is poised to strengthen this week, although concerns about stagflation in the UK economy could temper GBP’s gains.

On Tuesday, the UK’s latest labour market report will be released. Economists anticipate that wage growth accelerated in the three months to December, which could heighten fears of additional inflationary pressures and dampen expectations for Bank of England interest rate cuts this year.

These concerns may be further amplified on Wednesday when the UK’s consumer price index for January is expected to show a rise in inflation from 2.5% to 2.8%.

While a reduction in rate cut bets could provide a boost to GBP, worries about stagflation in the UK may limit the currency’s upside potential.

Meanwhile, USD could be influenced by market risk sentiment and any new comments from President Donald Trump.

The ‘Greenback’ could see an uptick if Trump hints at further tariffs.

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TAGS: Pound Dollar Forecasts