Pound to Dollar Breaches $1.30

March 18, 2025 - Written by Frank Davies

STORY LINK Pound to Dollar Breaches $1.30

The Pound-to-Dollar exchange rate trended mostly flat on Tuesday amid an absence of any UK or US economic data.

At the time of writing, GBP/USD was trading at approximately $1.2998, virtually unchanged from the start of Tuesday’s session.

On Tuesday, the US Dollar (USD) failed to attract much investor interest and even weakened against several other currencies due to a lack of US economic data releases.

Investors were also hesitant to make bold moves on the US Dollar ahead of the Federal Reserve's interest rate decision, set to be announced on Wednesday.

With ongoing concerns about the US economy, the Fed's decision on Wednesday could further impact USD exchange rates, particularly if they decide to cut interest rates or provide dovish guidance.

As a result, USD exchange rates stayed relatively stable during Tuesday's European trading session.

On Tuesday, the Pound (GBP) also had difficulty attracting buyers and remained mostly muted against its counterparts as a lack of UK data releases left GBP exchange rates without a clear direction.

Much like the US Dollar, GBP investors may have also been cautious about making aggressive bets on the Pound ahead of the Bank of England's (BoE) upcoming interest rate decision, which is scheduled for Thursday.

Until the central bank's announcement, Sterling is likely to continue trading without a definitive trend.

Looking ahead, the main driver of movement for the Pound US Dollar exchange rate on Wednesday will likely be the Federal Reserve’s upcoming interest rate decision.

If the central bank decides to cut interest rates, USD exchange rates could take a significant hit.

For the Pound, there will be no UK data releases on Wednesday, so GBP exchange rates are likely to stay within a narrow range until the Bank of England's interest rate decision on Thursday.

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TAGS: Pound Dollar Forecasts