Created
: 2025.06.05
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
GBP/USD advances to multi-year highs above 1.3600 on renewed USD weakness
World FX news
Breaking news
GBP/USD advances to multi-year highs above 1.3600 on renewed USD weakness
New
2025.06.05 23:02
2025.06.05 23:02
2025.06.05 23:02
- GBP/USD gathered bullish momentum and rose to its highest level since February 2022.
- Disappointing weekly US Jobless Claims data weighs on the USD.
- Markets await comments from Federal Reserve policymakers.
GBP/USD gained traction in the American session on Thursday and climbed to its highest level since February 2022 above 1.3600. At the time of press, the pair was up 0.4% on the day at 1.3605.
The broad-based selling pressure surrounding the US Dollar (USD) seems to be fuelling GBP/USD's daily rally.
Earlier in the session, the data published by the US Department of Labor showed that the number of first-time applications for unemployment benefits rose to 247,000 in the week ending May 31. This reading came in worse than the market expectation of 235,000 and weighed on the USD.
Additionally, European Central Bank (ECB) President Christine Lagarde's hawkish comments triggered capital outflow out of the USD. After the ECB's decision to cut key rates by 25 basis points, Lagarde noted that they are in a good place and that they might be approaching the end of the current policy cycle.
Reflecting the USD weakness, the USD Index was last seen losing 0.4% on the day at 98.45.
On Friday, the US Bureau of Labor Statistics will publish the May employment report. Ahead of this key release, several Federal Reserve (Fed) policymakers will be delivering speeches in the American session on Thursday. According to the CME FedWatch Tool, markets are currently pricing in about a 30% probability of a 25 bps Fed rate cut in July.
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.
Last updated
: 2025.06.05
Related articles
Canadian Dollar gives back gains despite upbeat jobs data
6 minutes agoMexican Peso climbs to eight-month highs against the US Dollar despite upbeat US jobs data
2025.06.07 04:39USD/JPY Price Forecast: Soars to weekly high, near 145.00 on hot US jobs report
2025.06.07 04:37EUR/USD declines on hot US NFP report, dents ECB-driven Euro rally
2025.06.07 03:56Dow Jones Industrial Average tests fresh highs on NFP beat despite downside revisions
2025.06.07 03:03Fed's Harker: Still possible the Fed can cut rates later this year
2025.06.07 01:57
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?
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.
Most viewed
Canadian Dollar gives back gains despite upbeat jobs data
The Canadian Dollar (CAD) saw firm gains in employment figures on Friday, with an overall net increase in Canadian employment thumping median market forecasts for a contraction.
New
2025.06.07 06:04Mexican Peso climbs to eight-month highs against the US Dollar despite upbeat US jobs data
The Mexican Peso (MXN) is experiencing its third consecutive day of gains against the US Dollar (USD) on Friday, pushing the USD/MXN exchange rate to its lowest level in eight months.
New
2025.06.07 04:39USD/JPY Price Forecast: Soars to weekly high, near 145.00 on hot US jobs report
USD/JPY extended its uptrend for two consecutive days, with the major currency pair reaching a new weekly high of 145.09, driven by solid US economic data on Friday.
New
2025.06.07 04:37EUR/USD declines on hot US NFP report, dents ECB-driven Euro rally
EUR/USD trip down extends its losses on Friday after hitting a six-week high near 1.1500 as Nonfarm Payroll figures in the United States (US) came in stronger than expected despite cooling off.
New
2025.06.07 03:56Dow Jones Industrial Average tests fresh highs on NFP beat despite downside revisions
The Dow Jones Industrial Average (DJIA) briefly tested fresh 13-week peaks on Friday, with equities taking a step higher after Nonfarm Payrolls (NFP) jobs data came in stronger than expected.
New
2025.06.07 03:03Silver Price Forecast: XAG/USD hits a 13-year high on increased demand for the industrial metal
Silver (XAG/USD) is experiencing another day of positive gains, which has pushed prices to $36.00, its highest level since February 2012, providing a firm barrier of resistance.
New
2025.06.07 02:45Gold price falls on strong US Nonfarm Payrolls yet is poised for weekly advance
Gold price extended its losses for the second consecutive day on Friday but is poised to finish the week with gains of over 1.30% after the latest Nonfarm Payrolls report in the United States (US) was solid, pressuring traders to trim their bets that the Federal Reserve (Fed) will ease monetary poli
New
2025.06.07 02:15Fed's Harker: Still possible the Fed can cut rates later this year
Federal Reserve (Fed) Bank of Philadelphia President Patrick Harker is embarking on a farewell tour.
New
2025.06.07 01:57AUD/USD falls as US Dollar bulls return following NFP data
The Australian Dollar (AUD) is weakening against the US Dollar (USD) following Friday's Nonfarm Payrolls (NFP) pushed back expectations of a near-term interest rate cut from the Federal Reserve (Fed).
New
2025.06.07 00:52GBP/USD slips as strong US jobs data cools Fed rate cut bets
GBP/USD tumbled during the North American session, down over 0.30% after the latest jobs report in the United States (US) maintained the status quo, with the economy remaining strong. The pair traded at 1.3526 after hitting a daily high of 1.3586.
New
2025.06.07 00:21Disclaimer:
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.
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
