Pound Sterling is trading mixed against major currencies this afternoon as investors digest a sharp improvement in Eurozone business sentiment, a stronger-than-expected rally in global equity markets and continued political developments in the UK following Keir Starmer’s resignation earlier this week.
While Sterling has strengthened against several commodity-linked currencies, it remains under pressure against the US Dollar and currencies benefiting from improving global risk appetite.
The biggest global market story today is the sharp rebound in European and global equities after concerns surrounding Middle East tensions eased further.
Risk-sensitive assets have attracted fresh inflows, while investors continue to assess whether last week’s Federal Reserve guidance will keep the US Dollar supported through the summer.
At the same time, stronger European PMI data has helped lift the Euro and broader sentiment across European financial markets.
For Pound Sterling, the political transition story remains important. Markets continue to assess what a future Andy Burnham administration could mean for fiscal policy and public spending.
However, the reaction in both the Pound and gilt markets has remained relatively measured, suggesting investors are becoming more comfortable with the prospect of a leadership transition.
US Dollar (GBP/USD) – 1.315016 (-0.38%)
The Pound to Dollar exchange rate has fallen to fresh multi-month lows as the US Dollar continues to benefit from last week’s hawkish Federal Reserve guidance. Treasury yields remain elevated and investors continue to favour US assets amid expectations that interest rates will remain higher for longer. Sterling has struggled to gain traction despite a calmer political backdrop, with GBP/USD now trading at its weakest level since the spring.
Euro (GBP/EUR) – 1.160949 (+0.09%)
GBP/EUR has pushed to fresh 2026 highs after stronger-than-expected Eurozone PMI data improved confidence in the region’s growth outlook. Despite the Euro‘s strength elsewhere, Sterling has managed to outperform thanks to ongoing support from relatively high UK interest rates and the absence of significant disruption following Starmer’s resignation. The pair is now trading at its strongest level of the year.
Japanese Yen (GBP/JPY) – 212.702820 (-0.29%)
The Pound has weakened against the Yen as investors continue to trim risk exposure and favour defensive assets. While easing geopolitical tensions have reduced safe-haven demand somewhat, the Yen remains supported by expectations that the Bank of Japan will continue its gradual normalisation process. GBP/JPY remains above 212 but has fallen sharply from the highs seen earlier this month.
Australian Dollar (GBP/AUD) – 1.908476 (-0.02%)
GBP/AUD remains near the strongest levels seen this month. The Australian Dollar has benefited from improving global risk sentiment and hopes that Chinese stimulus measures will continue to support regional growth. However, Sterling has retained an advantage thanks to stronger UK yields and continued political stability. Upcoming Australian inflation data could provide the next major catalyst.
Canadian Dollar (GBP/CAD) – 1.873090 (-0.14%)
The Pound to Canadian Dollar exchange rate has edged lower as improving risk appetite and firmer commodity prices provide support for the Canadian currency. Oil prices remain below the highs seen earlier this month, but the broader backdrop for commodity-linked currencies has improved. Traders will continue to monitor both oil markets and Canadian inflation expectations.
Swiss Franc (GBP/CHF) – 1.070238 (+0.14%)
Sterling has recovered some ground against the Swiss Franc after recent weakness. Improved market sentiment has reduced demand for traditional safe-haven assets, helping GBP/CHF move higher. The pair remains close to the strongest levels of June despite ongoing uncertainty surrounding global growth prospects.
New Zealand Dollar (GBP/NZD) – 2.333802 (+0.13%)
The Pound to New Zealand Dollar exchange rate has climbed to fresh monthly highs. Although risk sentiment has improved, the New Zealand Dollar continues to struggle against stronger-performing currencies. Concerns about Chinese demand and global trade remain important considerations for investors. GBP/NZD is now approaching its highest level of 2026.
Chinese Yuan (GBP/CNY) – 8.931984 (-0.35%)
Sterling remains under pressure against the Yuan as investors continue to favour Asian currencies benefiting from improving regional sentiment. The Yuan has also been supported by expectations of further Chinese policy support. GBP/CNY remains close to the weakest levels recorded this year.
Swedish Krona (GBP/SEK) – 12.880618 (+0.20%)
GBP/SEK has reached fresh yearly highs as Sterling continues to outperform the Krona. While stronger European growth data has supported sentiment, Sweden’s economic outlook remains relatively subdued. The pair has now gained almost 4% so far in 2026.
Norwegian Krone (GBP/NOK) – 12.977535 (+0.38%)
The Norwegian Krone remains under pressure despite support from the energy sector. Sterling has continued to outperform as oil prices remain well below the peaks seen during recent geopolitical tensions. GBP/NOK has risen almost 4% during June and is now trading at its highest level of the month.
Singapore Dollar (GBP/SGD) – 1.708375 (-0.20%)
GBP/SGD remains under pressure as the Singapore Dollar benefits from stronger regional sentiment and continued support from Asian markets. The pair remains heavily influenced by both US Dollar movements and broader trade expectations across the Asia-Pacific region.
Indian Rupee (GBP/INR) – 124.170339 (-1.17%)
The Pound to Indian Rupee exchange rate is among today’s weakest performers. Lower oil prices continue to support India’s economic outlook, while strong capital inflows have boosted the Rupee. Sterling has fallen sharply against INR during June despite remaining higher on a year-to-date basis.
Turkish Lira (GBP/TRY) – 61.143914 (-0.33%)
GBP/TRY has retreated from recent record highs but remains firmly elevated by historical standards. Inflation and currency instability continue to weigh on the Turkish economy, although the Lira has stabilised somewhat during recent weeks. The longer-term trend remains supportive for Sterling.
Hong Kong Dollar (GBP/HKD) – 10.308937 (-0.39%)
GBP/HKD remains under pressure as the stronger US Dollar continues to weigh on Sterling. The pair has fallen steadily during June and remains close to the lowest levels seen this year. Future direction will depend heavily on developments in GBP/USD and broader Dollar sentiment.
South African Rand (GBP/ZAR) – 21.891285 (+0.25%)
The Pound to South African Rand exchange rate has recovered as Sterling regains some ground against emerging-market currencies. The Rand remains highly sensitive to commodity prices and global risk appetite, although improving market sentiment has helped support the South African currency over recent weeks.
