Pound to Dollar Today: GBP/USD Fails to Take $1.2700

February 25, 2025 - Written by Frank Davies

STORY LINK Pound to Dollar Today: GBP/USD Fails to Take $1.2700

The Pound was largely subdued on Monday despite the day’s upbeat trading conditions.

At the time of writing, the Pound-to-Dollar GBP/USD exchange rate was trading at approximately $1.2635, virtually unchanged from the start of Monday’s session.

On Monday, the US Dollar (USD) faced difficulties in attracting buyers and even weakened against several of its peers due to a lack of economic data releases.

The absence of economic news left USD susceptible to shifts in market sentiment and risk appetite.

With a generally positive trading mood on Monday, the 'Greenback' found it challenging to gain ground due to its status as a safe-haven currency.

Combined with the dearth of economic indicators, this situation kept USD exchange rates under pressure during Monday’s European session.

On Monday, the Pound (GBP) traded mostly sideways against the majority of its counterparts as an absence of UK data releases at the start of the week kept GBP exchange rates largely unchanged.

However, the optimistic market mood on Monday provided some support to Sterling.

With its increasing sensitivity to risk, the positive trading atmosphere helped maintain stability in the Pound against most of its peers.

Looking ahead, the main driver of movement for the Pound US Dollar exchange rate on Tuesday will likely be economic data from both the US and the UK.

For the US Dollar, the US will release its latest CB consumer confidence index for February.

With expectations of a slight decline, the 'Greenback' could encounter new challenges if the data meets forecasts.

In the UK, the latest CBI distributive trades survey for February will also be released on Tuesday.

Should the data reflect another decline as anticipated, it could put pressure on GBP exchange rates during the latter part of Tuesday’s European trading session.

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TAGS: Pound Dollar Forecasts