GBP Advances Toward Multi-Year High Amid USD Weakness and Solid UK Fundamentals

GBP Advances Toward Multi-Year High Amid USD Weakness and Solid UK Fundamentals

Pound Sterling Makes Further Gains Against the US Dollar

The British Pound (GBP) is extending its upward trend, rising 0.2% against the US Dollar (USD) in Thursday’s European session. This move puts GBP among the top performers in the G10 currency space, as it inches closer to its multi-year high set last week.

Fundamentals Favor GBP as Yield Spreads Widen

While recent UK economic releases—including a mildly weaker construction PMI and inflation expectations—have played a secondary role, the currency has drawn support from widening UK-US yield spreads, which have gained momentum since mid-May.

Bank of England Signals Stability Ahead of June Policy Meeting

Bank of England (BoE) officials have adopted a modestly neutral stance, suggesting a preference to hold rates for now, while remaining open to easing if necessary. Market participants are now widely expecting the BoE to maintain its current policy rate at its next meeting on June 19.

Related Tredu.com Reads:

• GBP/USD Outlook for June 2025
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• BoE Rate Expectations: What Traders Should Know