US Dollar: USD/GBP Extends Losses Ahead of Crucial US Inflation Print

March 12, 2025 - Written by Frank Davies

STORY LINK US Dollar: USD/GBP Extends Losses Ahead of Crucial US Inflation Print

The US Dollar fell back against the Pound Sterling (GBP) on Tuesday following the publication of some US labour data.

At the time of writing, the Pound-to-Dollar exchange rate was trading at approximately $1.2920, up roughly 0.4% from the start of Thursday’s session.

On Tuesday, the US Dollar (USD) encountered some volatility against its peers despite some domestic data coming in better than expected.

The latest JOLTs job openings report for January surpassed forecasts, increasing from 7.508 million to 7.74 million, higher than the projected 7.63 million.

However, the US Dollar weakened against most of its peers after US President Donald Trump announced that tariffs on Canadian steel and aluminium would be set at 50% instead of 25%.

On Tuesday, the Pound (GBP) strengthened against most of its major trading partners despite some mid-tier domestic data falling short of expectations.

The British Retail Consortium (BRC) retail sales monitor for February reported a 0.9% increase, which was significantly lower than the expected 2.4% rise.

Nevertheless, the Pound managed to gain value against the majority of its counterparts despite the underwhelming release.

Looking ahead, economic data from the US will likely drive the Pound US Dollar exchange rate on Wednesday.

The US is expected to release its latest Consumer Price Index (CPI), which is forecast to show a slowdown in both core and headline inflation for February.

If the data meets expectations, it could boost the ‘Greenback’ during mid-week trading.

The lack of significant domestic data releases on Wednesday for the Pound means that GBP exchange rates may trade without a clear direction.

Without fresh economic indicators, the Pound’s performance will likely be more influenced by overall market mood.

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TAGS: Pound Dollar Forecasts