Modified: Thursday, 28 August 2025 22:00 BST

– Written by


Tim Boyer

STORY LINK GBP/USD Price Forecast: Pound Sterling at $1.351 as Dollar Loses Ground

The Pound US Dollar exchange rate traded mostly flat on Thursday as the US published its latest GDP estimate for the second quarter of 2025.

At the time of writing, GBP/USD was trading at approximately $1.3505, virtually unchanged from the start of Thursday’s session.

The US Dollar (USD) lost ground on Thursday, slipping against several major peers despite the release of stronger-than-expected US data.

The second-quarter GDP showed the American economy rebounded more sharply than forecast, accelerating from -0.5% to 3.3%, surpassing expectations for a 3.1% rise.

Ordinarily, such robust growth figures would have bolstered the ‘Greenback’. However, the upbeat market mood during Thursday’s session reduced demand for the safe-haven currency, leaving USD on the defensive.

The Pound (GBP) lacked direction on Thursday, trading in a tight range against most major currencies as investors were left without new UK data to drive movement.

During Wednesday’s trading session, Sterling had gained some ground after interim PPI figures from the Office for National Statistics (ONS) pointed to lingering inflationary pressures, reinforcing speculation that Bank of England (BoE) may maintain a hawkish stance.

However, with no fresh catalysts emerging, this support quickly faded.

As a result, the Pound was left treading water through much of Thursday’s European session, with broader market sentiment dictating GBP exchange rate movements.

GBP/USD FORECAST:

Looking ahead to Friday’s European session, movement in the GBP/USD exchange rate is set to be shaped by a key US release.

The spotlight will fall on July’s core PCE price index, the Federal Reserve’s preferred measure of inflation, which is forecast to edge higher from 2.8% to 2.9%.

Should the data meet expectations, it could strengthen the US Dollar by dampening speculation over potential Fed interest rate cuts, reinforcing demand for the ‘Greenback’ as the week draws to a close.

In contrast, the UK calendar will remain quiet, leaving Sterling without an economic catalyst.

This could see GBP trade largely on external factors. As a risk-sensitive currency, any improvement in market sentiment could lend the Pound some modest support, especially against the safe-haven US Dollar.

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TAGS: Pound Dollar Forecasts