Modified: Wednesday, 27 August 2025 21:45 BST

– Written by


Tim Boyer

STORY LINK Pound to Dollar Price Forecast: Can GBP/USD Hold Ground before US GDP Data?

The Pound US Dollar exchange rate dipped on Wednesday as a downbeat sentiment swept markets.

At the time of writing, GBP/USD was trading at approximately $1.3436, down roughly 0.3% from the start of Wednesday’s session.

The US Dollar (USD) pushed higher through Wednesday’s session, overcoming renewed political unease linked to the Federal Reserve.

Fresh reports suggesting that Donald Trump intends to oust Fed Governor Lisa Cook reignited worries about political interference at the central bank this week.

While such developments often sap confidence in the Dollar, the currency was instead buoyed by its safe-haven appeal as investors sought stability amid fragile global sentiment.

This resilience allowed USD to make notable gains against several peers, with traders favouring the ‘Greenback’ despite the uncertainty hanging over the Fed.

The Pound (GBP) saw a patchy performance on Wednesday, making modest gains against some currencies while remaining steady against others, after the UK’s latest CBI distributive trades survey was published.

Retail activity continued to show signs of contraction, but the index slightly exceeded expectations, rising from -34 to -32 instead of the anticipated -33.

The small upside provided Sterling with limited support, helping the Pound maintain a generally steady tone across major currencies during mid-week trade.

GBP/USD FORECAST

Looking ahead to Thursday’s European session, the focus for GBP/USD will shift firmly onto the upcoming release of the US’s second-quarter GDP estimate.

Markets are expecting a rebound in growth, with forecasts pointing to a stronger reading following the slowdown earlier in the year.

If the data meets or exceeds expectations, it could reinforce confidence in the resilience of the US economy and provide fresh support for the ‘Greenback’.

Turning to the Pound, the UK data calendar remains relatively barren, leaving Sterling without a strong domestic driver.

This absence of fresh UK data means the Pound is likely to take its cues from broader market mood, limiting the scope for any major upside as the week progresses.

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TAGS: Pound Dollar Forecasts