Pound-to-Dollar FX Rate Climbs amid London US-China Trade Discussions

June 10, 2025 - Written by David Woodsmith

STORY LINK Pound-to-Dollar FX Rate Climbs amid London US-China Trade Discussions

The Pound US Dollar exchange rate managed to gain ground on Monday as traders looked ahead to the latest round of US–China trade negotiations.

At the time of writing, GBP/USD was trading at approximately $1.3573, up roughly 0.4% from the start of Monday’s session.

The US Dollar (USD) weakened across the board on Monday as investors braced themselves for new trade discussions between the US and China set to take place in London.

A risk-on mood took hold of markets ahead of the talks, with investors seemingly hopeful that both sides might build on last month’s agreement to ease reciprocal tariffs.

However, this optimism weighed heavily on the safe-haven ‘Greenback’, dampening demand amid the upbeat market sentiment.

While a breakthrough in negotiations could help stem USD losses, any signs of discord are likely to keep the currency under sustained pressure.

The Pound (GBP) saw choppy trading on Monday, gaining against the US Dollar while falling back against its more risk-sensitive rivals.


With no major UK data to drive its movement, Sterling received some modest backing from a generally positive risk environment, which helped it strengthen against traditional safe-haven currencies due to its growing risk-sensitive character.

However, with important UK economic releases scheduled for release Tuesday, many investors remained cautious, keeping Sterling’s gains in check as they awaited clearer signals.

Looking ahead, the spotlight for the GBP/USD exchange rate on Tuesday will likely be on the release of key UK labour market data.

The UK is set to release April’s unemployment rate along with the latest average earnings growth (excluding bonuses.)

Both readings are expected to be underwhelming, with unemployment predicted to rise to its highest level since August 2021, and wage growth data anticipated to slow.

Should the data meet these forecasts, it could heighten concerns over a cooling UK labour market, potentially weighing on Sterling as the week progresses.

Meanwhile, the US Dollar is unlikely to see any significant movement on Tuesday, as no major US economic releases are scheduled.


As a result, the ‘Greenback’ will likely trade in line with market reactions to Monday’s US-China trade talks.

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TAGS: Pound Dollar Forecasts