Pound Sterling trades lower against US Dollar after US Manufacturing PMI data


  • The Pound Sterling ticks lower to near 1.3300 against the US Dollar as the latter struggles to extend recovery.
  • US-China trade uncertainty will likely keep investors on their toes.
  • BoE officials stress the need to discount trade war risk in monetary policy decisions.

The Pound Sterling (GBP) trades slightly lower against the US Dollar (USD) marginally above 1.3300 during North American trading hours on Thursday. The GBP/USD pair ticks lower as the US Dollar (USD) attracts bids after the release of the upbeat United States (US) ISM Manufacturing Purchasing Managers’ Index (PMI) data for April. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, strives to settle above the fortnightly high around 100.00.

The ISM agency reported that the Manufacturing PMI came in higher at 48.7 vs. estimates of 48.0, but remained lower than the prior release of 49.0. Though the PMI data has outperformed expectations, a figure below 50.0 is still considered as contraction in activities. New Orders Index contracted at a moderate pace to 47.2 against the prior release of 45.2. Addiontaly, Employment Index also increased to 46.5 from 44.7.

The ISM Manufacturing Prices Paid, which gauges change in input cost, came in at 69.8. The input cost measure of the manufacturing sector missed estimates of 70.3 but exapnded at a faster pace from the former release of 69.4. Increasing input costs would feed consumer inflation that will limit the scope for the Federal Reserve (Fed) to reduce interest rates at a time when economy looks in need of a boost.

The US Q1 Gross Domestic Product (GDP) data showed on Wednesday that the economy shrank in the first quarter of the year by an annualized rate of 0.3%, mainly due to a substantial increase in imports. US importers frontloaded inputs from their foreign suppliers to escape the burden of higher tariffs imposed by US President Trump on April 2. 

Earlier in the day, the US Dollar struggled to extend its two-day recovery, which was driven by hopes that fears of global disruption due to the imposition of additional tariffs by US President Donald Trump have peaked.

The USD rebounded after the White House signaled that it could announce bilateral trade deals with a number of trading partners in weeks. “Initial trade deals are to be announced in weeks, not months,” US Trade Representative Jamieson Greer said at Fox News, Reuters reported. However, he denied any trade discussion with China, which is still a concern for market participants, given the reliance of US industries on imports from the Asian giant. 

Daily digest market movers: Pound Sterling moves higher against its peers

  • The Pound Sterling bounces back against its major peers on Thursday in the European session. The British currency recovers despite fears that the global trade war will hurt the United Kingdom’s (UK) economic outlook. 
  • There is a great chance that the UK will have a trade deal with Washington, and the impact of reciprocal tariffs by Donald Trump will be insignificant, given that the additional duty is 10%, the lowest among US trading partners. However, the major threat for the UK will be intense competition with other nations, assuming that Trump’s protectionist policies will force his trading partners to sell their products in other territories at lower prices.
  • Bank of England (BoE) officials, including Governor Andrew Bailey, have warned that the central bank should consider global trade war risk in the fallout of Trump’s tariffs. "We do have to take very seriously the risk to growth,” Bailey said last week. Separately, BoE Deputy Governor Clare Lombardelli expressed concerns over trade policy uncertainty and stressed that it is “prudent” to consider “persistent risks” while making monetary policy decisions, Bloomberg reports.
  • Increasing global economic uncertainty has forced traders to raise bets supporting the BoE to cut interest rates in the policy meeting on May 8. The BoE is almost certain to reduce borrowing rates by 25 basis points (bps) to 4.25%.

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 Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.30% 0.10% 1.32% 0.05% 0.33% 0.36% 0.51%
EUR -0.30% -0.20% 1.03% -0.28% 0.03% 0.07% 0.20%
GBP -0.10% 0.20% 1.22% -0.05% 0.23% 0.26% 0.40%
JPY -1.32% -1.03% -1.22% -1.28% -0.99% -1.01% -0.88%
CAD -0.05% 0.28% 0.05% 1.28% 0.29% 0.31% 0.45%
AUD -0.33% -0.03% -0.23% 0.99% -0.29% 0.03% 0.18%
NZD -0.36% -0.07% -0.26% 1.01% -0.31% -0.03% 0.14%
CHF -0.51% -0.20% -0.40% 0.88% -0.45% -0.18% -0.14%

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).

Technical Analysis: Pound Sterling strives to hold 1.3300

The Pound Sterling retraces to near 1.3330 against the US Dollar from the three-year high of 1.3445. However, the overall outlook of the pair remains bullish as all short-to-long Exponential Moving Averages (EMAs) are sloping higher.

The 14-day Relative Strength Index (RSI) falls inside the 40.00-60.00 range, indicating that the bullish momentum is over for now. However, the upside bias still prevails.

On the upside, the round level of 1.3600 will be a key hurdle for the pair. Looking down, the April 3 high around 1.3200 will act as a major support area.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD struggles to retain 1.1500 as USD gains traction

EUR/USD struggles to retain 1.1500 as USD gains traction

EUR/USD hovers around the 1.1500 level in the American session on Friday. The US Dollar surges despite dovish comments from Fed Governor Waller, supporting a rate cut as soon as July. The mood sours as investors weigh Middle East developments. 

GBP/USD dives below 1.3500 after weak UK data, resurgent USD

GBP/USD dives below 1.3500 after weak UK data, resurgent USD

GBP/USD turned red for the day and approaches the 1.3450 area as the week comes to an end. Earlier in the day, the UK reported weak Retail Sales figures, although the ongoing slump seems related to renewed risk aversion fueling safe-haven US Dollar demand. 

 

Gold surges above $3,3360 as fears kick in

Gold surges above $3,3360 as fears kick in

Gold gathers near-term momentum and trades near $3,370 ahead of the weekly close, as risk sentiment took a turn to the south. Following a positive start, Wall Street turned south. Middle East tensions and massive back-and-forth missile exchanges between Iran and Israel seem to be behind the ongoing run to safety.

 

Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025

Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025

Ondo Finance launched tokenized treasuries on the XRP Ledger in June, paving the way for seamless institutional adoption. The market capitalization of tokenized treasuries has grown to $5.9 billion despite market uncertainty over US tariffs.

Weekly focus: War and risk of escalation weigh on market sentiment

Weekly focus: War and risk of escalation weigh on market sentiment

The war between Israel and Iran and the risk of further escalation weighed on markets this week. Equity markets largely traded in red and US treasury yields slid lower. That said, markets were by no means in full risk-off sentiment.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025