Pound To Dollar News: GBP/USD Rallies To 1.263 On Weak US Jobs

By Adam Solomon

Published: Feb 20, 2025 at 17:00

Updated: Feb 20, 2025 at 17:30

The Pound Sterling edged higher against the US Dollar on Thursday morning as markets digested the latest comments from US President Donald Trump.

GBP/USD –08.04.2025

GBP to USD

At the time of writing, the Pound US Dollar exchange rate GBP/USD was trading at around $1.2614. Up roughly 0.2% from Thursday’s opening levels.

The US Dollar (USD) faced selling pressure on Thursday following comments made by President Trump on the potential for a trade agreement with China.

Speaking overnight on Wednesday Trump said it would be ‘possible’ to reach a new trade deal with China despite recent tensions and suggested that Chinese President Xi Jinping visit the US to help strike a wide-ranging new deal.

This follows a report from the New York Times suggesting that Trump is eying a ‘bigger, better’ trade deal with Beijing.

However, Trump’s comments reiterating his threat to impose 25% tariffs on cars, semiconductor chips and pharmaceutical imports were tempering the US dollar’s losses.

USD demand was also underpinned following the publication of the minutes from the Federal Reserve’s latest policy meeting, which reaffirmed the bank’s hawkish outlook on monetary policy.

While the Pound (GBP) was able to strengthen against the US dollar on Thursday, it struggled to replicate this success against most of its other peers.

This came amid fresh concern over the UK’s economic trajectory.

Data published on Thursday highlighted a worrying fall in UK consumer confidence, with households looking to reign in their spending amid fears of further price rises, particularly in the wake of the government’s budget back in October.

GBP/USD Forecast: Upbeat UK Data to Lift Sterling?

Looking ahead to the end of the week, the Pound US Dollar exchange rate may strengthen with the publication of some UK economic data.

First up will be the latest retail sales data, which is expected to report a rebound in sales growth last month.

This will be swiftly followed by UK PMI data, with Sterling likely to strengthen if February’s preliminary figures report an acceleration of growth in the UK’s private sector.

Closing out the session will be the publication of the latest S&P US PMIs. While not as influential as the ISM releases, they may still pull the US dollar lower if February’s figures disappoint similarly to January’s.