Pound Sterling Climbs Against Dollar as US Labour Data Disappoints

June 5, 2025 - Written by Tim Boyer

STORY LINK Pound Sterling Climbs Against Dollar as US Labour Data Disappoints

The Pound-to-Dollar exchange rate (GBP/USD) strengthened on Thursday as the US released its latest jobless claims.

At the time of writing, GBPUSD was trading at approximately $1.3602, up roughly 0.4% from the start of Thursday’s session.

The US Dollar (USD) came under pressure on Thursday after the latest US initial jobless claims data disappointed market expectations.

Rather than the expected drop to 235,000, claims unexpectedly surged to 247,000, marking the highest reading since October 2024.

The sharp increase fuelled concerns over the resilience of the US labour market, prompting broad-based losses for the ‘Greenback’ as investors reassessed the outlook for the US economy.

The Pound (GBP) traded without clear direction on Thursday, with the absence of any notable UK economic releases limiting momentum.

As a result, Sterling's performance was largely dictated by shifts in market sentiment.


A mildly optimistic mood in global markets lent GBP modest support against traditional safe-haven currencies like the US Dollar.

However, this same risk-on tone saw the Pound lose ground to more risk-sensitive peers such as the Australian Dollar (AUD) and New Zealand Dollar (NZD).

Looking to Friday, the spotlight will fall on a key set of US economic figures, in the form of the latest non-farm payrolls and unemployment data.

While the unemployment rate is expected to hold steady, markets are bracing for a sharp slowdown in job creation, with forecasts pointing to a drop from 177,000 to just 130,000 new jobs in May.

If confirmed, this could put significant pressure on the US Dollar, particularly if it intensifies concerns about the health of the US labour market.

In contrast, the Pound may remain directionless heading into the weekend, as the UK’s economic calendar remains quiet, likely leaving Sterling vulnerable to external factors.

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TAGS: Pound Dollar Forecasts