GBP/USD Rebounds to 1.3219 as Dollar Rally Fades, Closes June Near 1.3182

GBP/USD recovered modestly to 1.3213-1.3219 on June 26 as the broad dollar rally lost steam amid softer US data revisions. The rebound capped a turbulent period that began with steady UK consumer confidence on June 18 and better-than-expected May retail sales on June 19, but quickly deteriorated after Keir Starmer’s resignation triggered political uncertainty. Weak June PMIs showing services contraction at 48.7 and a hawkish Fed backdrop fueled a broad dollar rally, driving GBP/USD to a June low near 1.3158 before the late-month stabilization. The pair ultimately posted a 2.2% monthly decline, its steepest since July 2025, with markets now pricing only one BoE rate hike this year.