US dollar is losing ground in trading against the Pound
The GBP/USD exchange went up 0.3% on May 13. The US dollar was heavily impacted by the inflation data, that ended up being weaker than forecasted.
At the moment one British pound is traded for about 1.229 US dollar.
On May 13 it was revealed that US inflation dropped by 0.8% - the steepest fall since the 2008 crisis. The dollar is still under pressure, since the situation around the economic reopening in the United States remains uncertain. The macroeconomic data remains underwhelming as well. According to The Wall Street Journal’s analysis, the crisis has driven the consumer prices down at the fastest pace since the last recession.
At the same time, the US dollar is pressed by waves of selling, since many traders are now less risk-averse. Economies around the world are reopening and investors are taking their assets elsewhere.
The British pound, meanwhile, enjoyed an uptick, caused by a positive report on GDP dynamic in Q1 of 2020. The economy contracted by 5.8%, which is still not as bad as forecasted 8%.