Pound Sterling to Dollar Forecast: GBP Pulls Back After Weak UK Services Data

Pound Sterling to Dollar Forecast: GBP Pulls Back after Weak UK Services Data

The Pound to US Dollar exchange rate (GBP/USD) retreated on Tuesday after briefly climbing to its strongest levels in nearly four months, with weaker UK data taking some of the shine off Sterling’s recent rally.

Pound’s rally fades on softer services data

Sterling’s strong start to 2026 hit its first real bump on Tuesday, as a downward revision to December’s PMI data opened the door for the US dollar to claw back half a cent. S&P revised down its initial 52.1 score in the UK services PMI study to 51.4. The US dollar was also impacted by some Federal Reserve chatter, and while that was mixed, some indications of a dovish slant helped the US dollar and lifted stock markets toward fresh highs. The h…