Pound Sterling Strengthens Against US Dollar Amid Weak US Economic Data

Pound Sterling appreciates against USD on weak US inflation and retail data

The Pound Sterling (GBP) strengthened to around 1.3330 versus the US Dollar (USD) during the European session on Friday. This upward move came after the release of weaker-than-expected U.S. inflation and retail figures, which weighed heavily on the Greenback.

The U.S. Producer Price Index (PPI) data for April showed an unexpected decline in service costs, notably a 3.1% drop in hotel and motel prices. This sharp pullback in tourism-related services reflected broader concerns about reduced travel demand amid ongoing trade and immigration policies.

In addition, U.S. retail sales rose by just 0.1% in April, a notable slowdown compared to the 1.5% increase seen in March. Auto sales and durable goods orders also showed signs of weakness, further signaling a potential loss of consumer momentum. As a result, the US Dollar Index (DXY) slipped toward 100.50, supporting GBP/USD's move higher.