ExchangeRates.org.uk – The Pound to US Dollar () exchange rate weakened on Tuesday as disappointing UK labour market data weighed on Sterling ahead of a key speech from Federal Reserve Chair Jerome Powell.Latest — Exchange Rates:
Pound to Dollar (GBP/USD): 1.33202 (-0.09%)
Euro to Dollar (EUR/USD): 1.16118 (+0.4%)
Dollar to Japanese Yen (USD/JPY): 151.717 (-0.49%)
DAILY RECAP:
The Pound (GBP) came under renewed pressure on Tuesday after the Office for National Statistics (ONS) published a weaker-than-expected UK jobs report.Unemployment ticked higher from 4.7% to 4.8% in August — the highest since 2021 — while wage growth excluding bonuses slowed to 4.7%, missing forecasts and marking its lowest level in three years.
The softer data reignited speculation that the Bank of England (BoE) could still deliver a rate cut before year-end, with markets now pricing in increased odds of easing at the December meeting.
Sterling sentiment was further dampened by caution ahead of speeches from senior BoE officials later in the week, as investors await any clues over the likely policy path heading into the final quarter of 2025.
Across the Atlantic, the US Dollar (USD) held relatively steady during Tuesday’s European session.
The Greenback benefited modestly from a cautious tone in global markets, with renewed concerns over US–China trade tensions prompting demand for safe-haven assets.
However, traders were reluctant to make bold moves ahead of the highly anticipated Federal Reserve speech from Chair Jerome Powell, due later in the day.
Powell’s remarks are expected to be closely scrutinised for clues on whether the Fed intends to maintain its recent dovish tilt or signal a firmer stance against inflation.
GBP/USD Forecast: Central Bank Rhetoric to Set the Tone
Looking ahead to Wednesday’s session, speeches from central bank policymakers on both sides of the Atlantic are likely to dominate GBP/USD movement.
In the UK, comments from BoE Deputy Governors Dave Ramsden and Sarah Breeden could offer direction for Sterling.
If either official pushes back against current market expectations for rate cuts this year, the Pound could find some near-term support.
Meanwhile, the US Dollar’s trajectory will hinge on the tone of several Fed speakers scheduled throughout the day.
Should policymakers lean hawkish and emphasise resilience in the US economy, the Greenback may extend its recent recovery.
Conversely, any dovish commentary or renewed focus on downside growth risks could see USD lose momentum once again, allowing GBP/USD to stabilise midweek.
This content was originally published on ExchangeRates.org.uk
