Pound to Dollar Rate Today: Sterling Edges Higher as US CPI Falls Short

June 12, 2025 - Written by Frank Davies

STORY LINK Pound to Dollar Rate Today: Sterling Edges Higher as US CPI Falls Short

The Pound US Dollar exchange rate managed to gain ground on Wednesday as the US released its latest inflation reading.

The US Dollar (USD) weakened on Wednesday following the release of underwhelming US inflation data.

Core inflation remained flat at 2.8% in May, falling short of expectations for a modest rise to 2.9%.

Meanwhile, headline inflation ticked up to 2.4%, also below the forecasted 2.5% increase.

The softer readings fuelled renewed speculation that the Federal Reserve could begin cutting interest rates as early as July, weighing heavily on USD exchange rates.

Adding to the downward pressure, the US Dollar showed little reaction to seemingly positive trade developments, including a statement from President Donald Trump stating that trade talks with China were ‘done.’

The Pound (GBP) saw limited movement on Wednesday despite the delivery of the UK Chancellor’s latest spending review.


Rachel Reeves outlined how the government plans to allocate around £2 trillion in public funds, with notable increases in areas such as defence, affordable housing and the NHS.

However, Sterling was largely unmoved following the announcement, with markets instead appearing to wait for more impactful economic developments later in the week.

Looking ahead, the GBP/USD exchange rate is likely to face notable volatility on Thursday amid key data releases from both the UK and US.

Starting with the Pound, attention will turn to the UK’s latest GDP figures.

April’s data is expected to show a 0.1% contraction in economic output, following 0.2% growth in March.

A confirmed slowdown could stoke fears of a loss in economic momentum and fuel speculation that the Bank of England (BoE) may soon begin cutting interest rates, which would likely place Sterling under renewed pressure.

Across the Atlantic, the US will publish its latest producer price index (PPI) and weekly initial jobless claims.


Forecasts point to a rebound in PPI and a slight dip in jobless claims, both signs of resilience in the US economy.

If the figures print in line with expectations, they could lend support to the ‘Greenback’.

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TAGS: Pound Dollar Forecasts