GBP/USD Forecast: Pound Sterling Steady Near $1.37 Ahead of BoE

Modified: Tuesday, 3 February 2026 17:16 BST - Written by Frank Davies

STORY LINK GBP/USD Forecast: Pound Sterling Steady Near $1.37 Ahead of BoE

The Pound to US Dollar exchange rate (GBP/USD) traded sideways on Tuesday, with limited conviction on either side as a partial US government shutdown disrupted the flow of economic data.

At the time of writing, GBP/USD was hovering around $1.3667, little changed from the opening levels of the session.

The US Dollar (USD) struggled to gain momentum after confirmation that January’s key labour market releases would be delayed due to the ongoing government shutdown.

The US Bureau of Labor Statistics confirmed that the non-farm payrolls report and associated employment data will not be published until funding is restored, likely pushing the release into next week at the earliest.

The disruption left USD traders cautious, with many reluctant to take fresh positions amid the lack of timely economic signals.

The Dollar also faced pressure from an improvement in global risk appetite, following President Donald Trump’s decision to lift tariffs on India. The easing of trade tensions reduced demand for traditional safe-haven assets, further weighing on the ‘Greenback’.

The Pound (GBP) meanwhile traded steadily, showing resilience against most major counterparts.

Sterling activity remained subdued as investors positioned ahead of the Bank of England’s upcoming policy decision on Thursday. While interest rates are widely expected to be left unchanged, the recent uptick in UK inflation has prompted speculation that the BoE’s guidance could strike a slightly more hawkish tone.

GBP/USD Forecast: Can US Services PMI Revive the Dollar?

Looking ahead, volatility in the Pound to US Dollar exchange rate could pick up following the release of the latest ISM services PMI.

If January’s services data mirrors the resilience seen in the manufacturing sector, it could lend the US Dollar support by reinforcing expectations that the Federal Reserve will delay rate cuts well into 2026.

Attention will also turn to the UK’s final services PMI. Confirmation that activity expanded to a fresh 21-month high at the start of the year may offer the Pound some modest support, although markets are likely to remain sensitive to broader risk sentiment and US political developments.

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TAGS: Pound Dollar Forecasts