Pound-to-Dollar Rate Climbs as US PPI prints Below Forecast

June 13, 2025 - Written by John Cameron

STORY LINK Pound-to-Dollar Rate Climbs as US PPI prints Below Forecast

The Pound US Dollar exchange rate (GBP/USD) managed to tick higher on Thursday, as it shrugged off disappointing UK GDP figures following a softer-than-expected US PPI print.

At the time of writing, GBPUSD was trading at approximately $1.3603, up roughly 0.3% from the start of Thursday’s session.

The US Dollar (USD) weakened against most major peers on Thursday, pressured by a pair of lacklustre economic releases.

May’s producer price index (PPI) rose from -0.2% to 0.1%, falling short of the 0.2% forecast, and adding to the previous day’s softer CPI figures, which together strengthened expectations for a Federal Reserve interest rate cut.

Also weighing on the ‘Greenback’ on Thursday was the release of the latest initial jobless claims report, which showed no improvement as filings held steady instead of falling as expected, raising fresh concerns about the strength of the US labour market.

While the Pound (GBP) rose against the US Dollar, it came under significant pressure on Thursday as fresh GDP figures cast doubt over the UK’s economic resilience.

According to the Office for National Statistics (ONS), the UK economy shrank by 0.3% in April, its steepest monthly decline in over a year, and a sharper drop than economists had predicted.


The downbeat reading intensified fears that the UK’s recovery is faltering, fuelling speculation that the Bank of England (BoE) could bring forward interest rate cuts to support growth.

As markets digested the prospect of looser monetary policy, Sterling slumped against its peers.

Looking ahead to Friday, movement in the GBP/USD exchange rate is likely to hinge on the latest US consumer sentiment data.

The University of Michigan’s preliminary index for June is expected to show a modest improvement, forecast to rise from 52.2 to 53.5.

Should the data meet or exceed forecasts, the US Dollar could find fresh support heading into the weekend, as improving sentiment may temper Federal Reserve rate cut expectations.

Meanwhile, the Pound may face a lacklustre end to the week due to the absence of notable UK data.

Without any domestic releases to drive momentum, Sterling is likely to be influenced by external drivers such as broader market trends.


Should markets turn to upbeat trading conditions on Friday, Sterling could close the week firming against the US Dollar and other safe-haven currencies.

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TAGS: Pound Dollar Forecasts