GBP/USD Exchange Rate Steady as Markets Await US PCE Price Index Data

The Pound to US Dollar (GBP/USD) exchange rate remained largely unchanged on Thursday as investors reacted to key US economic data while the UK faced a lack of domestic releases.

GBP/USD Exchange Rate Holds Steady Amid US Data Releases

As of writing, the GBP/USD pair was trading near $1.2673, maintaining a stable position from its opening levels.

US Dollar (USD) Strengthens Slightly on Positive Economic Data

While the US Dollar (USD) remained mostly flat against the Pound, it gained traction against other major currencies. This came after several significant US economic reports were released, influencing USD exchange rates.

• Durable goods orders exceeded expectations, rebounding from -1.8% to 3.1%, surpassing the anticipated 2% increase.
• The US GDP growth rate for Q4 2024 aligned with market forecasts, but a dip from 3.1% to 2.3% limited further USD gains.

Pound (GBP) Struggles Amid Lack of UK Economic Data

The Pound (GBP) remained rangebound due to the continued absence of significant UK economic data. This left GBP exchange rates without a clear direction, making Sterling vulnerable to global market sentiment.

Adding to the pressure, a cautious risk mood weighed on the Pound, as investors avoided risk-sensitive assets amid economic uncertainties.

GBP/USD Forecast: US PCE Price Index in Focus

Looking ahead, the GBP/USD exchange rate is expected to be driven primarily by upcoming US economic data. The spotlight is on the core PCE price index, the Federal Reserve’s preferred inflation gauge.

• Forecasts suggest a decline from 2.8% to 2.6% in January.
• If the data meets expectations, it could fuel speculation of Fed interest rate cuts, potentially impacting the USD exchange rate.

With no major UK economic data scheduled for Friday, the Pound Sterling (GBP) may continue to trade without a clear trend as the week concludes.

Key Takeaways:

✅ GBP/USD remains steady as US data influences market sentiment.
✅ Durable goods orders beat forecasts, supporting the US Dollar (USD).
✅ UK data drought limits Pound (GBP) movement.
✅ US PCE price index could shape Federal Reserve policy expectations.

Stay tuned for further updates on the GBP/USD exchange rate as markets react to key economic indicators.