USD/GBP Price & Performance (USDGBP)

The British Pound slipped to 1.2895 against the US Dollar as UK inflation data came in below expectations. February’s headline inflation fell to 2.8% year-over-year, fueling speculation of potential Bank of England rate cuts. Meanwhile, a fiscally conservative Spring Budget further dampened sentiment. Strong US economic data supported the Dollar.123

GBP/USD climbed to 1.2910 during Thursday’s Asian session, driven by declining US Treasury yields. However, escalating US trade policies, including new auto import tariffs, have added market uncertainty. UK inflation data, which fell below forecasts, has also sparked speculation of a dovish shift in Bank of England policy.431

The GBP/USD pair remains volatile, trading near 1.2900. Declining US Treasury yields and softer UK inflation data influence the pair, while traders await key US economic reports. Market sentiment is further clouded by US trade policy developments, including tariffs on auto imports, intensifying global trade tensions.341