|

GBP/USD retreats below 1.2500 on strong US Services PMI, JOLTS data

  • GBP/USD reaches new peak after Trump advisors hint at targeted tariffs, weakening the US Dollar despite strong US data.
  • US Services PMI and JOLTS job openings surpass expectations, signaling robust economic health.
  • UK retail sales hit highest level since March 2024, adding to the positive outlook for the Pound amid a light UK economic calendar.

The Pound Sterling rose to a new four-day peak of 1.2575 on Tuesday after posting its biggest gain in the last three days. The Washington Post revealed that US President-elect Donald Trump's advisers considered applying tariffs to specific imports, weakening the Greenback, which of late was boosted after upbeat US data. The GBP/USD trades at 1.2495, down by 0.12%.

Strong ISM Services PMI and JOLTS data, weighed on the GBP/USD pair

US equities remain mixed early during the North American session. The Institute for Supply Management (ISM) revealed that Services PMI rose by 54.1, exceeding estimates of 53.3 up from 52.1.

At the same time, the US Department of Labor revealed that the number of JOLTS job openings rose sharply, exceeding forecasts of 7.70 million to 8.098 million.

The data suggests the economy is in good shape and overshadowed the release of the Balance of Trade data.

The US Bureau of Economic Analysis (BEA) revealed that the trade deficit widened in November, with the Trade Balance figures coming at $-78.2 billion, more than the $-73.6 billion reported in October.

According to BEA, Imports increased from $339.9 billion to $351.6 billion, a 3.4% increase. US Exports rose from $266.3 billion to $273.4 billion, a 2.7% increase.

In the UK, the British Retail Consortium revealed that retail sales rose 3.2% year over year in December, their highest level since March 2024.

Ahead this week, the UK economic docket remains scarce. In the US, the calendar will feature the ADP National Employment report and Initial Jobless Claims data for the week ending January 4.

GBP/USD Price Forecast: Technical outlook

From a technical standpoint, the GBP/USD daily chart suggests the pair is reversing some of its weekly gains, the release of US data. If the pair drops below 1.2450, look for a retest of 1.2400. On further weakness, the next support would be the January 2 low of 1.2351.

On the other hand, if buyers buy the dip, they could retest 1.2500 and the daily high of 1.2575 before reaching 1.2600.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Swiss Franc.

 USDEURGBPJPYCADAUDNZDCHF
USD 0.24%0.20%0.48%0.20%0.03%-0.03%0.53%
EUR-0.24% -0.04%0.21%-0.03%-0.21%-0.27%0.27%
GBP-0.20%0.04% 0.30%0.01%-0.17%-0.23%0.32%
JPY-0.48%-0.21%-0.30% -0.28%-0.44%-0.52%0.04%
CAD-0.20%0.03%-0.01%0.28% -0.17%-0.23%0.31%
AUD-0.03%0.21%0.17%0.44%0.17% -0.06%0.48%
NZD0.03%0.27%0.23%0.52%0.23%0.06% 0.55%
CHF-0.53%-0.27%-0.32%-0.04%-0.31%-0.48%-0.55% 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold retakes $4,200 amid pre-US CPI repositioning

Gold holds firm, revisiting $4,200 on Friday, extending recovery from two-month lows. US Dollar eases in tandem with Oil prices and Treasury yields, awaiting US sentiment data. The tide seems to be turning in favor of Gold, but the daily RSI is still bearish.


Ethereum activates Glamsterdam on Sepolia testnet: Why the price is falling anyway
Ethereum (ETH) has reached a key milestone in its next major network upgrade. The planned changes aim to improve Ethereum’s Layer 1 capacity and efficiency as network activity grows. The development comes as ETH retreats toward $2,500, highlighting the contrast between the network’s long-term technical progress and its short-term market weakness.
Canada Unemployment Rate expected to rise to 6.5% as US tariffs test labor market

Statistics Canada will release its September Labour Force Survey on Friday, with markets anticipating a modest recovery in employment following August's sharp decline. The report takes on particular importance as it will be the first to fully reflect the impact of new United States tariffs that took effect on August 22.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?
The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.