Pound to Dollar Rate Gains to 1.33 as Trade Uncertainty Weighs on USD

April 24, 2025 - Written by Frank Davies

STORY LINK Pound to Dollar Rate Gains to 1.33 as Trade Uncertainty Weighs on USD

The Pound to Dollar exchange rate traded sideways on Wednesday as both the UK and US released their latest preliminary PMI releases.

At the time of writing, GBP/USD was trading at approximately $1.32958.

On Wednesday, the US Dollar (USD) faced challenges and declined against multiple major currencies following the release of the latest S&P Global PMI data for the US.

The preliminary figures for April revealed a slightly better-than-expected manufacturing index, but the services index fell short of market expectations, marking the second weakest month of growth in the past year.

This disappointment weighed on USD during mid-week trading, dampened further by the positive market sentiment and the US Dollar's appeal as a safe-haven currency.

On Wednesday, the Pound (GBP) lost ground against most of its major trading partners after the release of the UK's latest services PMI data.

The preliminary PMI figure for April revealed a significant drop in the UK's crucial services sector, dipping below the 50-point threshold for the first time in 18 months.


This threshold is particularly important as it marks the line between economic growth and contraction.

Amidst the ongoing global economic turbulence, largely driven by US President Donald Trump's tariffs, this month's services sector data highlighted broader economic challenges, leading to a decrease in demand for the Pound during mid-week trading.

Moving into Thursday, the key driver for the Pound US Dollar exchange rate will likely be the release of several important US economic reports.

The latest durable goods orders and initial jobless claims are scheduled to be published, and these figures could significantly influence USD's performance as the week comes to a close.

On the UK side, the focus will be on the release of the latest CBI business optimism index and industrial trends orders.

Both of these indicators are expected to show a downturn, which could put further downward pressure on Sterling.

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TAGS: Pound Dollar Forecasts