Pound Sterling Strengthens to 1.3580 as US Dollar Slumps on Weak Jobs Data and Trump Tariffs

GBP/USD Climbs to 1.3580 as US Dollar Slips on Tariffs and Soft Jobs Data

US Dollar Under Pressure from Tariff Hike and Labor Concerns

The Pound Sterling (GBP) has rallied against the US Dollar (USD), pushing the GBP/USD pair to a high of 1.3580 on Thursday during European trading. This move is primarily driven by renewed USD weakness, sparked by a sharp drop in US private sector hiring and new tariff policies from President Donald Trump.

Live Chart: Follow GBP/USD live on the Tredu FX Dashboard.

Tariff Escalation and Economic Softness Drag on USD

• Trump's 50% tariffs on steel and aluminum, announced Wednesday, reignited fears of a slowdown in industrial activity and global trade tensions.
• The US ADP Employment Report showed only 37,000 new private sector jobs in May—well below expectations of 115,000 and the lowest reading since January 2021.
• Additionally, the US Services PMI pointed to a contraction in activity, while earlier data showed the manufacturing sector also retreating.

This combination has pushed the US Dollar Index (DXY) down to 98.60, its lowest point in over six weeks.

BoE's Cautious Tone Supports GBP

On the UK side, Bank of England Governor Andrew Bailey reiterated that any future policy shifts would remain "gradual and cautious." Despite this dovish stance, the relative stability in UK monetary expectations is helping support the GBP in a risk-averse environment.

Related: BoE Monetary Policy Outlook – What Traders Should Know.

What’s Next for GBP/USD?

• Resistance levels: 1.3600 – 1.3625
• Support zones: 1.3530 – 1.3490
• Market focus now turns to the US Nonfarm Payrolls (NFP) release on Friday