Pound to Dollar Tests 1.335 as USD Rates Weighed on Trump FED Criticism

May 14, 2025 - Written by James Fuller

STORY LINK Pound to Dollar Tests 1.335 as USD Rates Weighed on Trump FED Criticism

The Pound to US Dollar exchange rate (GBP/USD) trended higher on Wednesday, as investors reacted to a fresh round of criticism from US President Donald Trump directed at the Federal Reserve.

At the time of writing, GBP/USD was hovering around $1.335. Up roughly 0.3% from Wednesday’s opening levels.

The US Dollar came under pressure in midweek trade after President Trump piled fresh pressure on the Federal Reserve.

Trump once again called for the US central bank to slash interest rates, calling out Fed Chair Jerome Powell for acting too slowly while other major central banks continue to ease their monetary policy.

Trump’s latest criticism followed the release of the latest US consumer price index on Tuesday, which reported US inflation unexpectedly slowed to a four-year low of 2.3% in April.

The remarks stirred unease among USD investors, once again casting a spotlight on the central bank’s autonomy under Trump’s leadership.

Elsewhere, USD demand was also undermined by risk-positive flows, amid the optimism surrounding the new US-China trade agreement.


While the Pound accelerated against the US Dollar on Wednesday, it struggled to replicate this success against its other peers, despite the optimism surrounding the upcoming UK-EU summit.

Although the primary agenda is expected to revolve around defence and international cooperation, there is speculation that trade talks may also be revisited.

GBP investors hope that this meeting could lay the groundwork for an improved UK-EU trade agreement, amid the expectation that a reset in relations might boost long-term UK economic prospects.

Looking ahead, the Pound to Dollar exchange rate may continue to appreciate with the release of Thursday’s UK GDP figures.

Preliminary data for the first quarter is expected to show a marked acceleration in growth, from 0.1% to 0.6%. This could help relieve pressure on the Bank of England (BoE) to deliver more interest rate cuts and strengthen Sterling.

For the US Dollar, Thursday’s retail sales data will be the key focus. Analysts are bracing for a slowdown in consumer activity amid rising uncertainty over Trump’s evolving trade strategy.

Should sales disappoint, it could extend any upside in the GBP/USD exchange rate.

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