British Pound Gains Amid Weak USD, Positive UK PMI, and US Tariff Relief

British Pound Advances Amid Weak USD, Upbeat UK PMI, and US Tariff Respite

GBP/USD Recovers as US Dollar Softens Ahead of ADP Employment Data

The British Pound modestly rose against the US Dollar on Wednesday, reversing Tuesday’s decline as the USD weakened slightly in anticipation of key US labor market data. GBP/USD traded around 1.3522 during pre-European hours, staying within its familiar range between 1.3450 and 1.3600.

Temporary US Tariff Relief and Positive UK PMI Support GBP

The UK received a temporary reprieve from the 50% US tariffs on steel and aluminum, providing some relief to the British Pound. Additionally, upbeat UK Purchasing Managers Index (PMI) data boosted market sentiment. The S&P Global Composite PMI increased to 50.3 in May from 49.4, while the Services PMI rose to 50.9, indicating slight economic expansion.

US Dollar Holds Near Recent Highs

The US Dollar Index (DXY) remained steady near Tuesday’s high at around 99.20, supported by a stronger-than-expected JOLTS Job Openings report. Markets await the ADP Employment Change data later Wednesday for further guidance on the USD's direction.

Internal Links for Tredu.com:

• GBP/USD Live Chart and Analysis
• Understanding Purchasing Managers Index (PMI)
• Forex Impact of US Tariffs
• ADP Employment Report Forecasts