February 27, 2025 – Written by David Woodsmith
STORY LINK The Pound to Dollar News: GBP/USD Holds $1.267 Following US Treasury Yields Recovery
The Pound Dollar (GBP/USD) exchange rate dipped on Wednesday amid a rebound in US Treasury yields and the day’s risk-of flows.
At the time of writing, GBP/USD was trading at approximately $1.2650, down roughly 0.2% from the start of Wednesday’s session.
On Wednesday, the US Dollar (USD) regained ground against most of its counterparts, reversing the decline seen on Tuesday, which coincided with falling US Treasury yields.
However, US Treasury yields saw a rebound on Wednesday, breaking a five-day losing streak and providing additional support to the USD in
mid-week trading.
Moreover, an anxious trading atmosphere on Wednesday further bolstered the USD, enhancing its appeal as a safe-haven currency against riskier alternatives.
On Wednesday, the Pound (GBP) had a tough time attracting buyers and dipped against most of its major counterparts amid a lack of significant UK economic data.
This left Sterling particularly susceptible to the fluctuating market sentiment.
With the day bringing negative trading conditions, the increasingly risk-sensitive Pound found it even more challenging to capture the interest of investors.
Looking ahead to Thursday, the Pound US Dollar exchange rate is likely to be heavily influenced by several key economic data releases
from the US.
The US will unveil its latest Durable Goods Orders for January, the final quarter 2024 GDP figures, and the initial jobless claims for the week ending February 22nd.
Any surprises or deviations from market expectations in these reports could inject new volatility into the US Dollar as the week progresses.
On the other hand, the UK will not have any significant data releases on Thursday, which may continue to put pressure on the Pound, making it difficult for GBP exchange rates to gain traction.
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TAGS: Pound Dollar Forecasts
