British Pound Nears 6-Month High on Surprise GDP Growth
The British pound, or sterling, climbed past $1.30, moving closer to a six-month high of $1.31 on April 3, after UK gross domestic product (GDP) growth surprised to the upside with 0.5% growth in February—five times the expected pace.
All major sectors contributed, and stronger factory output hinted at stockpiling ahead of Trump’s aggressive new tariff measures.
The solid data led traders to slightly reduce expectations for rapid Bank of England rate cuts, though three quarter-point cuts are still priced in for 2025. Sterling also benefited from a softer dollar as investors react to the intensifying US-China trade war.
Analysts have said US dollar recovery in the near term is quite unlikely given a shift in the global sentiment and perception about the current administration.
Other major currency or dollar trading pairs have been trending strongly against the greenback. Still, forex traders said they have seen intermittent shows of strength; the US dollar has not been able to retain daily gains. China’s finance ministry announced it will raise tariffs on US goods to 125%, following a week of retaliatory moves.
The US now has a combined tariff burden on Chinese imports totalling 145%, including a 125% import duty and an additional 20% fentanyl-related levy. #British Pound Nears 6-Month High on Surprise GDP Growth Naira Hits New Low despite $124m FX Injection
