- The GBP/USD breaks above 1,3500 and quotes about 1,3538, the highest level since February 2022.
- Retail sales of the United Kingdom increase a 1.2% monthly and 5% year -on -year in April, exceeding forecasts.
- The USD weakens widely in the midst of new Trump tariff threats and tax concerns.
The sterling pound (GBP) rises sharply against the US dollar (USD) to its highest level in three years on Friday. The pair has generally contributed upwards during the last five days, with the GBP/USD breaking over 1,3500 to quote around 1,3538, an increase of almost 0.80% at the time of writing during the American session. The increase in cash prices is mainly attributed to a weak US dollar in general and a stronger retail sales data (UK) stronger than expected.
The latest economic data published by the National Statistics Office (ONS) showed that retail sales increased by 1.2% monthly in April, far exceeding the 0.2% forecast and bouncing strongly from the increased increase at the decline of 0.1% in March. In annual terms, retail sales rose 5%, accelerating from the 2.6%increase in March and well above the 4.5%market consensus.
The optimistic number of retailers portrays a base of consumers of the resilient United Kingdom, despite global economic uncertainty around US tariffs. On the other hand, the latest data on the purchasing managers index (PMI) published Thursday presented a mixed vision of the United Kingdom economy, with the PMI composed of the United Kingdom Global S&P, going up to 49.4 from 48.5 in April, indicating a slower rhythm of contraction in the activity of the private sector. The services sector returned to expansion territory, with the PMI of services increasing to 50.2 from 49.0, while the manufacturing remained in contraction, since the manufacturing PMI fell to 45.1 from 45.4.
That said, the inflation data published on Wednesday showed that the general consumer price index (CPI) and the underlying accelerated. The general CPI rose 3.5% and the underlying IPC increased 3.8% from 3.4% in March.
The combination of all the latest economic data has a mixed macroeconomic image but generally resilient, since price pressures remain high, even when the boost of growth shows early recovery signs, which could justify that the Bank of England (BOE) maintains the interest rate without changes in its next meeting.
“With persistent inflation and growth that progresses, it is becoming more difficult to see interest rates falling quickly,” said Neil Birrell, Investment Director of Premier Miton Investors, an asset management company.
On the other hand, the US dollar remains subdued with the dollar index (DXY) falling to about 99.00 at the time of writing, since President Donald Trump revived global commercial tensions, pointing both Apple and the European Union with threats of new tariffs. Trump proposed a 50% tariff to EU imports as of June 1, citing stagnant negotiations, adding to a state of risk aversion already driven by US fiscal instability.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.76% | -0.86% | -1.04% | -1.03% | -1.36% | -1.52% | -0.99% | |
| EUR | 0.76% | -0.10% | -0.29% | -0.27% | -0.59% | -0.75% | -0.22% | |
| GBP | 0.86% | 0.10% | -0.17% | -0.17% | -0.46% | -0.64% | -0.11% | |
| JPY | 1.04% | 0.29% | 0.17% | 0.03% | -0.32% | -0.47% | 0.07% | |
| CAD | 1.03% | 0.27% | 0.17% | -0.03% | -0.35% | -0.48% | 0.05% | |
| Aud | 1.36% | 0.59% | 0.46% | 0.32% | 0.35% | -0.15% | 0.39% | |
| NZD | 1.52% | 0.75% | 0.64% | 0.47% | 0.48% | 0.15% | 0.54% | |
| CHF | 0.99% | 0.22% | 0.11% | -0.07% | -0.05% | -0.39% | -0.54% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
