July 9, 2025 – Written by Frank Davies

STORY LINK GBP/USD Forecast: Pound Sterling Price Flat as Markets Await FOMC

The Pound US Dollar exchange rate was trapped in a narrow range on Wednesday ahead of the release of the US’s latest FOMC minutes.

At the time of writing, GBP/USD was trading at approximately $1.3582, virtually unchanged from the start of Wednesday’s session.

The US Dollar (USD) trended lower on Wednesday, coming under pressure ahead of the Federal Reserve’s latest meeting minutes.

Sentiment towards the ‘Greenback’ soured earlier in the session following the announcement of fresh tariffs by President Donald Trump, which unsettled markets and added to trade policy uncertainty.

With a slight improvement in risk appetite also curbing demand for the safe-haven currency, USD struggled to attract support as investors looked ahead to the FOMC’s upcoming meeting minutes.

The Pound (GBP) found its footing on Wednesday, rebounding from earlier losses despite another quiet day on the UK economic calendar front.

Sterling’s mid-week recovery followed Tuesday’s slide, which was sparked by a downbeat fiscal forecast from the Office for Budget Responsibility (OBR).

The UK’s fiscal watchdog projected that UK government debt could climb to 270% of GDP by the 2070s, citing rising borrowing costs and mounting fiscal challenges.

Despite these concerns, the Pound managed to stabilise as markets appeared to take the long-term warning in stride, with broader risk sentiment helping to cushion GBP’s losses.

Looking ahead to Thursday’s European session, movement in the GBP/USD exchange rate will likely hinge on the Federal Reserve’s latest meeting minutes, released late on Wednesday.

Markets will be combing through the minutes for fresh insight into the Fed’s monetary policy outlook.

If policymakers strike a dovish tone and signal that rate cuts remain on the table, the US Dollar could find renewed support.

Meanwhile, with no UK economic data scheduled for release, the Pound is expected to remain at the mercy of external drivers.

In the absence of domestic catalysts, broader market sentiment will likely continue to guide GBP direction.

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TAGS: Pound Dollar Forecasts