Pound to Dollar Rate Dips Then Reverses Losses to 1.348

June 23, 2025 - Written by David Woodsmith

STORY LINK Pound to Dollar Rate Dips Then Reverses Losses to 1.348

The Pound US Dollar exchange rate drifted lower amid Monday’s risk-off flows and following both the UK’s and the US’s latest S&P PMIs.

At the time of writing, GBP/USD was trading at approximately $1.3424, virtually unchanged from the start of Monday’s session.

The US Dollar (USD) climbed across the board at the start of the week, buoyed by a wave of risk aversion as geopolitical tensions escalated.

News of US strikes on Iran over the weekend rattled markets on Monday, prompting a flight to safety that saw demand for the safe-haven ‘Greenback’ surge.

USD gains were then extended in the afternoon following the release of some stronger-than-forecast PMI data.

Both the services and manufacturing indices showed improvement in June, suggesting resilience in the US economy and adding further momentum to the Dollar’s rally.

The Pound (GBP) fluctuated against its peers on Monday following the release of the UK’s preliminary PMI figures for June.


Sterling drew modest support from a rise in the latest services PMI, which stands as the UK’s key growth driver.

The index edged higher, rising to a three-month high of 51.3, in line with market expectations.

The manufacturing index also exceeded forecasts, improving to 47.7, although it continued to signal a contraction in factory activity. (A reading below 50).

However, despite the stronger-than-expected figures, the data failed to spark a meaningful rally in GBP.

Gains were mostly limited to riskier rivals, with the Pound benefitting from a cautious market tone, with Sterling dipping against its safe-haven peers.

Looking ahead, movement in the GBP/USD exchange rate on Tuesday will likely be driven by a mix of UK and US economic releases.

In the UK, the latest CBI industrial trends orders for June are set to show a marginal improvement, rising from -30 to -29.


However, with the index still firmly in negative territory, the data may continue to reflect subdued sentiment in the manufacturing sector and provide limited support for the Pound.

Meanwhile, USD investors will be eyeing the latest US CB consumer confidence figures and a scheduled speech from Federal Reserve Chair Jerome Powell.

If confidence weakens unexpectedly or Powell strikes a dovish tone on monetary policy, the US Dollar could come under pressure later in the session.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Dollar Forecasts