Pound to Dollar Forecast: GBP/USD Slips as BoE’s Pill Calls for Cautious Approach

Modified: Wednesday, 8 October 2025 20:45 BST - Written by David Woodsmith

STORY LINK Pound to Dollar Forecast: GBP/USD Slips as BoE’s Pill Calls for Cautious Approach

The Pound to Dollar exchange rate (GBP/USD) traded mostly flat on Wednesday ahead of the release of the Federal Reserve’s September FOMC meeting minutes.

At the time of writing, GBP/USD was trading at approximately $1.3423, virtually unchanged from the start of Wednesday’s session.

The US Dollar (USD) strengthened against most of its major counterparts on Wednesday, extending its gains as investors sought safe-haven assets amid ongoing geopolitical tensions in Europe and Japan.

The prevailing risk-off sentiment continued to underpin demand for the ‘Greenback’, keeping USD exchange rates on the front foot through the first half of the session.

However, later in the day, the Dollar could face headwinds with the release of the Federal Reserve’s latest FOMC meeting minutes.

If the minutes strike a dovish tone or hint at a greater willingness to cut interest rates, this could prompt a pullback in USD, potentially halting the currency’s recent winning streak.

The Pound (GBP) held its ground against most major peers on Wednesday, showing resilience despite a lack of UK economic data and a broadly risk-off market mood.

Sterling was offered mild support later in the session after comments from Bank of England (BoE) Chief Economist Huw Pill.

Speaking at the University of Birmingham, Pill said policymakers should take a “conservative” approach to setting interest rates and stand ready to act firmly if inflation risks rise.

He reiterated that the Bank must remain focused on price stability, while acknowledging the high level of uncertainty facing the economy.

Pound to US Dollar Forecast: Sparse Data to Prompt Choppy Trade?

Looking ahead to Thursday’s European session, the Pound US Dollar (GBP/USD) exchange rate is likely to remain at the mercy of broader market sentiment amid a continued lack of key economic data.

With the US government still in shutdown, the release of the latest initial jobless claims report will be delayed, leaving investors without fresh US data to guide trading.

In the absence of new catalysts, the ‘Greenback’ is expected to react primarily to shifts in risk appetite.

Should a cautious, risk-off tone persist across markets, the safe-haven US Dollar could stay in demand, extending its recent strength.

As for the Pound, the UK calendar also remains bare, likely leaving Sterling directionless once again.

GBP exchange rates may therefore fluctuate in response to prevailing risk trends and external developments, with the currency likely to struggle to find a firm footing through Thursday’s session.

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TAGS: Pound Dollar Forecasts