Pound Wobbles as Dollar Surges Amid Economic Data Anticipation

The British pound weakened against the US dollar as traders await significant economic data. Focused on US employment, eurozone inflation, and UK business activity figures, currency traders anticipate market moves. Despite its recent 0.3% loss, the pound rose nearly 8% against the dollar in 2025, driven by overall dollar strength.

The British pound experienced a slight decline against the US dollar on Monday as the greenback surged for the fifth consecutive day amid expectations of crucial economic data releases. Traders are closely monitoring developments in Venezuela, but their primary focus remains on upcoming US employment figures, eurozone inflation rates, and UK business activity statistics scheduled for this week.

On the currency markets, sterling slipped to $1.3461, a marginal decrease, following a 0.3% loss last week. Despite this downturn, the pound achieved an impressive near 8% increase against the dollar in 2025, marking its most robust annual performance since 2017. "The pound's current weakness is attributed more to the overall dollar strength rather than specific UK-related issues," noted Chris Beauchamp, IG Chief Markets Strategist.

The pound displayed mild gains against the euro, nudging the single European currency down by 0.34% to trade at 86.77 pence. The Bank of England, which recently enacted a quarter-point interest rate cut, is predicted to implement at least one more reduction this year, possibly a second by year-end, according to money market projections.

(With inputs from agencies.)