Pound to Dollar Rate Today: GBP Sterling Nears 2-Month Best vs USD

March 3, 2025 - Written by David Woodsmith

STORY LINK Pound to Dollar Rate Today: GBP Sterling Nears 2-Month Best vs USD

European currencies such as the Pound Sterling and Euro rebounded strongly on Monday with the Sollar on the defensive, especially after the US data triggered fresh concerns over the economy.

The Pound to Dollar exchange rate (GBP/USD) quickly regained the 1.2600 level with steady gains and jumped to 1.2715 after the latest US data. This was close to 2-month highs as global developments dominated.

According to Scotiabank; “GBP resistance at 1.2720, last week’s high, remains firm resistance amid weak trend momentum, however, and spot will need to overcome this level to extend gains through the upper 1.27s in the short run.”

ING draws a contrast between the short and medium term; “We expect a decisive break below 1.25 in Cable in the coming weeks, but this week the pair may remain supported.”

The US ISM manufacturing index edged lower to 50.3 for February from 50.9 previously and slightly below consensus forecasts of 50.6 with worrying components.

There was a marginal increase in output while new orders dipped into contraction territory and there was also a contraction in jobs for the month.

Prices, however, increased at a faster rate on the month.


Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, commented; "Demand eased, production stabilized, and destaffing continued as panelists' companies experience the first operational shock of the new administration's tariff policy. Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts.”

The data will raise fresh concerns over a weakening US economy at the same time as increased cost pressures.

These concerns will feed directly into the US tariff debate.

President Trump is still insisting that tariffs on Mexico and Canada will come in on March 4th and he has also threatened an imminent announcement on Europe.

There have been assumptions that tariffs would support the dollar, but the recent data readings have increased concerns that there would be a negative economic impact which would potentially weaken the US currency.

Scotiabank commented; “Growth concerns, sprinkled with worries about sticky prices, will come into sharper relief this week if the US pushes ahead with tariffs which are all but certain to lift price pressures and chill activity in key industrial sectors.”

The global dimension for tariffs and the US game plan will also be a key element for the economic outlook and market reaction.


According to Rabobank; “If the US presses ahead with 25% tariffs, the White House is aiming at going solo. That means global chaos, and the market impact would be enormous. However, if the US builds a “Fortress America” vs. China, the same umbrella could extend to the UK, Europe, and others, if they agree the same terms.”

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TAGS: Pound Dollar Forecasts