GBP/USD Price Forecast: Pound Sterling Eyes BoE Mann Speech

Modified: Monday, 1 September 2025 21:55 BST - Written by Frank Davies

STORY LINK GBP/USD Price Forecast: Pound Sterling Eyes BoE Mann Speech

The Pound US Dollar exchange rate (GBP/USD) ticked higher on Monday as an improving mood and US market closure buoyed the pairing.

At the time of writing, GBP/USD was trading at $1.3536, up over 0.2% on the day.

The Pound (GBP) edged higher on Monday, regaining stability after slipping on Friday amid renewed concerns over potential tax increases in the government’s autumn budget.

With no major UK data releases to set direction, Sterling’s moves were muted, though a cautiously upbeat tone in markets offered some support to the increasingly risk-sensitive currency.

Overnight jitters tied to US tariffs weighing on Asia-Pacific manufacturing activity dampened global risk appetite, but European markets opened more positively, helping the Pound pick up modest tailwinds.

The US Dollar (USD) was subdued on Monday as US markets shut for the Labor Day holiday.

A cautiously upbeat risk tone weighed slightly on the safe-haven ‘Greenback’, although the absence of American market activity kept overall USD movement restricted.

GBP/USD Outlook: US PMI in Focus

Looking ahead, Tuesday may bring more pronounced shifts as US markets reopen, with the return of liquidity potentially sparking some volatility.

The highlight of the session will be the release of America’s latest ISM manufacturing PMI. Forecasts point to a rise from 48 to 48.6, though the index would still signal contraction in the sector. Such a result may weigh on the US Dollar, while a stronger or weaker reading could lift or drag on the currency, respectively.

In contrast, the Pound faces a quiet domestic calendar. This could see Sterling take its lead from UK political headlines, with speculation over autumn tax hikes posing a risk to the currency. The broader market mood may also play a role – upbeat risk appetite would likely favour GBP, whereas a downturn could benefit the ‘Greenback’.

Looking further ahead, Wednesday may inject fresh momentum into GBP/USD. Bank of England (BoE) policymaker Catherine Mann is set to speak in the morning, and if she reiterates her concerns about lingering inflation pressures, the Pound could find support.

At the same time, US data – including job openings and factory orders – may present a mixed picture for the Dollar, with rising vacancies offset by signs of weaker demand.

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TAGS: Pound Dollar Forecasts