Pound to Dollar Extends Best Rate of 2025, $1.30 in Target for Buyers

March 11, 2025 - Written by Frank Davies

STORY LINK Pound to Dollar Extends Best Rate of 2025, $1.30 in Target for Buyers

Pound Sterling (GBP) traded mostly flat against the US Dollar (USD) on Monday despite worries over the US economy.

At the time of writing, the Pound to Dollar exchange rate (GBP/USD) was trading at approximately $1.2917, virtually unchanged from the start of Monday’s session.

On Monday, the US Dollar (USD) had a tough time attracting buyers and weakened against most of its counterparts, as concerns over the US economy dampened the ‘Greenback’ at the beginning of the week.

President Donald Trump's comments on Friday about his ‘America first’ policies fuelled worries about ongoing US trade conflicts and the economic outlook, which weighed on the US Dollar.

Additionally, the ‘Greenback’ failed to leverage its safe-haven appeal, continuing to decline even amid the day's cautious trading environment.

At the start of the week, the Pound (GBP) struggled to gain momentum and fell against several currencies due to a lack of domestic economic data.

The absence of key economic indicators put pressure on GBP exchange rates, leaving them without a clear directional basis.

The situation worsened as a risk-averse market sentiment further weakened Sterling, causing additional declines in GBP.

As we look ahead to Tuesday, the primary factor influencing the Pound US Dollar exchange rate will likely be the release of the latest US labour data, specifically the US JOLTS job openings report.

Economists expect that January’s index will show an increase from 7.6 million to 7.75 million job openings which could provide a boost to the US dollar should the data print as expected.

Turning to the Pound, the UK will release its latest BRC (British Retail Consortium) retail sales monitor for February, which is the only significant economic data release scheduled for Tuesday.

If the data reflects the expected decline in retail sales, it could introduce new challenges for the Pound, potentially weakening it against the US dollar and its other counterparts.

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TAGS: Pound Dollar Forecasts