# Sterling heads higher on weaker dollar

> Sterling rose about 0.5% against the dollar to 1.2702 after the Bank of England held rates at 0.75% and UK retail sales fell 0.5% in May, in line with expectations. The dollar weakened broadly after the Federal Reserve kept rates at 2.50% and signaled possible cuts later in the year.

- Date: 2019-06-20 · published 2019-06-20T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/58853-sterling-heads-higher-on-weaker-dollar
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of Fed rate cuts weaken the dollar, which supports commodity prices quoted in dollars. The move is driven by policy expectations rather than a change in physical supply or demand.

## Read by commodity

- DXY: bearish ▼
- GBPUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2016-11-02 | [Sterling hits 2-week high against broadly weaker dollar](https://feedsoft.ai/events/74072-sterling-hits-2-week-high-against-broadly-weaker-dollar.md) | -0.6% | +3.2% |
| DXY | 2024-09-30 | [Sterling holds near recent highs on euro, dollar](https://feedsoft.ai/events/28572-sterling-holds-near-recent-highs-on-euro-dollar.md) | +0.9% | +3.1% |
| DXY | 2025-06-30 | [Sterling holds ground near 4-year high as dollar weakens \| Moneycorp](https://feedsoft.ai/events/24479-sterling-holds-ground-near-4-year-high-as-dollar-weakens-moneycorp.md) | -0.0% | +0.8% |
| DXY | 2025-06-27 | [Sterling keeps climbing on struggling dollar](https://feedsoft.ai/events/24475-sterling-keeps-climbing-on-struggling-dollar.md) | -0.3% | +0.3% |
| DXY | 2024-08-19 | [Sterling hits one-month high as Fed rate cut bets weigh on dollar \| Reuters](https://feedsoft.ai/events/29068-sterling-hits-one-month-high-as-fed-rate-cut-bets-weigh-on-dollar-reuters.md) | -0.8% | -0.7% |

## Sources

- economies.com: https://www.economies.com/forex/gbp-usd-news/sterling-heads-higher-on-weaker-dollar-29551

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.