The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range on Tuesday as a partial US government shutdown delayed the release of key American jobs data.
Pound to Dollar (GBP/USD): 1.37004 (+0.2%)
Euro to Dollar (EUR/USD): 1.18153 (+0.14%)
Dollar to Japanese Yen (USD/JPY): 155.6945 (+0.14%)
DAILY RECAP:
The Pound US Dollar (GBP/USD) exchange rate traded in a narrow range on Tuesday as a partial government shutdown delayed the release of key US jobs data.
At the time of writing, GBP/USD was trading at around $1.3667, virtually unchanged from Tuesday’s opening levels.
The US Dollar (USD) was subdued on Tuesday as the partial US government shutdown resulted in the delay of key jobs data.
A delay in the January employment report — including the highly watched non-farm payrolls and related labour market indicators — was confirmed by the US Bureau of Labor Statistics at the start of the week.
While a vote to extend funding was expected as early as Tuesday evening, this week’s cache of official jobs data is not expected until next week at the earliest.
The resulting uncertainty encouraged USD investors to adopt a more cautious stance.
At the same time, US President Donald Trump’s decision to lift tariffs on India cheered markets, further limiting demand for the safe-haven ‘Greenback’.
Meanwhile, the Pound (GBP) traded with relative stability on Tuesday, remaining resilient against most of its major peers.
Sterling activity stayed tightly constrained as markets shifted their attention toward the Bank of England’s (BoE) upcoming policy announcement.
While the BoE is expected to leave interest rates on hold when it concludes its latest policy meeting on Thursday, the recent uptick in UK inflation could lead to firmer rhetoric from policymakers.
Near-Term GBP/USD Forecast: US Services Data in Focus
Looking ahead, the Pound to US Dollar exchange rate could face headwinds in midweek with the publication of the latest ISM services PMI.
If January’s services index surprises to the upside, similar to the ISM manufacturing PMI, the US Dollar could strengthen sharply as resilience in the US private sector further tempers bets for Federal Reserve interest rate cuts in 2026.
In the meantime, Wednesday also brings the UK’s own services PMI. Sterling could attract support if January’s finalised index confirms that growth in the dominant services sector climbed to a 21-month high.
