Modified: Tuesday, 19 August 2025 22:00 BST

– Written by


David Woodsmith

STORY LINK GBP/USD Forecast: Pound Sterling Flat despite Downbeat Market Mood

Pound US Dollar Exchange Rate Muted amid Souring Trade

The Pound Sterling was trapped in a narrow range against the US Dollar on Tuesday despite a risk-off market sentiment.

While largely steady versus the Pound (GBP), the US Dollar (USD) managed to gain ground against several other major currencies on Tuesday.

Even in the absence of market-moving releases, the ‘Greenback’ drew support from a prevailing risk-off market mood.

The cautious tone bolstered the Dollar’s safe-haven appeal, particularly against its riskier rivals.

At the same time, investors remained hesitant to take aggressive positions on the Dollar ahead of key events later in the week, including the upcoming FOMC meeting minutes and the Jackson Hole Symposium.

On Tuesday, the Pound (GBP) showed little conviction, with a quiet UK economic calendar leaving Sterling largely influenced by overall market sentiment.

Amid a downbeat market mood, the currency fell back against a number of safe-haven peers, highlighting its sensitivity to shifts in risk appetite.

Equally, the risk environment allowed GBP to make small gains against more risk-sensitive currencies on Tuesday.

With no new domestic data to guide its movement, Sterling fluctuated against most of its key counterparts.

GBP/USD: UK and US Releases to Drive Movement

Looking ahead to Wednesday, the GBP/USD pair is expected to respond to key economic releases from both the UK and the US.

In the United States, investors will focus on the latest FOMC meeting minutes, which could weigh on the US Dollar if they signal a dovish stance and reinforce expectations of upcoming Federal Reserve interest rate cuts.

Meanwhile, the UK is set to publish July’s consumer price index (CPI), with forecasts pointing to a modest rise from 3.6% to 3.7%.

Should the inflation data meet expectations, Sterling may find support, potentially pushing GBP higher against the US Dollar during Wednesday’s European session.

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TAGS: American Dollar Forecasts Pound Sterling Forecasts