Select Language

GBP/USD heads into Friday on the backfoot after PMI data miss

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. GBP/USD heads into Friday on the backfoot after PMI data miss

World FX news

search
Breaking news

GBP/USD heads into Friday on the backfoot after PMI data miss

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.07.25 08:10
GBP/USD heads into Friday on the backfoot after PMI data miss

update 2025.07.25 08:10

  • GBP/USD broke a winning streak on Thursday, falling back into 1.3500.
  • Despite an overall bullish tilt, Cable is poised for a fresh downside challenge of key technical levels.
  • UK PMI figures missed the mark on Thursday, but Friday will be another shot at UK data redemption.

GBP/USD spoiled a three-day winning streak on Thursday, crumbling away from the 1.3600 handle and backsliding down to 1.3500. Purchasing Managers Index (PMI) data from both the United Kingdom (UK) and the United States (US) split markets down the middle, with US Services PMI figures beating the street and June's UK PMI numbers broadly missing the mark.

Heading into the last trading session of the week, Cable traders find themselves on the back foot, but with one last shot at a data-fueled upswing, assuming UK economic figures will play ball. UK Retail Sales for June are expected to rebound to 1.2% MoM following May's sharp -2.7% decline.

US Durable Goods Orders for June are also on the docket on Friday. Analysts are bracing for a sharp contraction in monthly durable goods, with median market forecasts calling for a -10.8% decline MoM to follow up on May's strong 16.4% upswing.

GBP/USD price forecast

Cable's recent bullish pivot has come under threat, with GBP/USD chalking in a sharp technical rejection from the 1.3600 region. Rising trendlines, climbing Exponential Moving Averages (EMA), and a general upwards trajectory in price action are all providing ballast on chart paper, but near-term momentum is still poised for a pullback to the 50-day EMA near 1.3475.

GBP/USD daily chart


Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

Date

Created

 : 2025.07.25

Update

Last updated

 : 2025.07.25

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

Gold slips as strong US jobs data offsets trade, Fed uncertainty

Next article

USD/CAD gathers strength to near 1.3650 as Canada's Retail Sales shrink

prev

Most viewed

EUR/USD ends week nearly 1% higher as trade optimism offsets weak US data

The EUR/USD finished the week up by nearly 1% on Friday, yet ended the daily session flat, following economic data from the United States (US) that was worse than expected, but offset by positive trade news. With the Greenback cutting losses, the pair trades at 1.1741 virtually unchanged.
New
update2025.07.26 07:08

US-Japan trade deal may not be as clear as Trump proclaims it to be

United States (US) President Donald Trump proudly declared an impending trade deal between the US and Japan earlier this week, touting an arrangement that would see US importers pay a much milder 15% tariff fee on all goods imported from Japan compared to the threatened 25% level that President Trum
New
update2025.07.26 05:07

Gold set for weekly loss as strong US data, trade optimism hits safe-haven demand

Gold price (XAU/USD) is poised to end the week on a lower note as economic data from the United States (US) and progress in trade deals with the latter weighed on safe-haven demand, driving the yellow metal lower.
New
update2025.07.26 04:09

NZD/USD pares gains as Greenback firms, optimism grows over US-China trade talks

The New Zealand Dollar (NZD) extends losses for a second consecutive session on Friday but remains poised for a weekly gain, supported by improved risk sentiment amid growing optimism over potential US trade deals.
New
update2025.07.26 03:21

Dow Jones Industrial Average recovers on Friday after better-than-expected Durable Goods Orders

The Dow Jones Industrial Average (DJIA) rebounded on Friday, recovering its footing after a mild downturn during the previous session.
New
update2025.07.26 03:20

WTI Crude Oil falls below $65 amid rising output and cloudy demand signals

West Texas Intermediate (WTI) is under pressure on Friday as markets respond to a growing global supply outlook and remain cautious on demand prospects.
New
update2025.07.26 03:13

Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats

The Canadian Dollar (CAD) took another hit on Friday, extending into a two-day backslide against the US Dollar (USD) as Loonie traders hunker down for a fresh bout of tariff-fueled tirades from United States (US) President Donald Trump.
New
update2025.07.26 02:06

EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank

Since US President Trump's reciprocal tariffs address on April 2, the EUR is the second best performing G10 currency after the safe-haven CHF, Rabobank's FX analyst Jane Foley reports.
New
update2025.07.26 01:39

AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook

The Australian Dollar (AUD) is losing ground against the US Dollar (USD) on Friday, pressured by rising US Treasury yields that continue to support demand for the Greenback.
New
update2025.07.26 01:11

USD/CHF steadies below 0.8000 amid resilient US data and easing trade fears

The Swiss Franc (CHF) loses ground for a third consecutive day against the US Dollar (USD) on Friday, pressured by improving risk sentiment and a rebound in the US Dollar.
New
update2025.07.26 01:07

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel