GBP/USD Outlook: Pound Holds Gains Against Dollar amid Ahead of US NFP

March 6, 2025 - Written by Frank Davies

STORY LINK GBP/USD Outlook: Pound Holds Gains Against Dollar amid Ahead of US NFP

The Pound Sterling (GBP) trended mostly flat against the US Dollar (USD) on Thursday amid a lull in UK and US economic releases.

At the time of writing, the GBP/USD exchange rate was trading at approximately $1.2876, virtually unchanged from the start of Thursday’s session.

On Thursday, the US Dollar (USD) had a tough time attracting investor interest compared to most other currencies as the 'Greenback' was weakened by growing expectations that the Federal Reserve might cut interest rates in May.

This shift in sentiment was partly fuelled by US President Donald Trump's remarks suggesting that his tariffs could have ‘little disturbance’ on the US economy.

These comments heightened concerns about a potential US recession, leading to increased bets on a Fed rate cut in May.

With no major US economic data released on Thursday, the 'Greenback' found it difficult to gain support, as it was largely influenced by these external factors.

On Thursday, the Pound (GBP) traded mostly flat against most of its counterparts as a lack of domestic data releases left Sterling without a clear direction.

The Pound also failed to gain momentum from the hawkish comments made by Bank of England (BoE) Governor Andrew Bailey the previous day.

Despite the central bank's hawkish stance, GBP exchange rates remained largely unchanged following Bailey's remarks and throughout Thursday's European session.

GBP/USD Exchange Rate Forecast: US Labour Data in the Spotlight

Looking ahead, the main driver of movement for the Pound US Dollar exchange rate on Friday will likely be the release of the latest US jobs data.

The non-farm payrolls index for February is expected to show an increase, while the unemployment rate for February is forecast to remain unchanged.

If the data meets these positive expectations, USD exchange rates could end the week on a strong note.

As for the Pound, there will be no significant domestic data releases on Friday's calendar, so Sterling may continue to trade without a clear direction as the week draws to a close.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Dollar Forecasts