Pound Sterling Rises vs Euro, Dollar on Surprise UK GDP Beat

Modified: Thursday, 15 May 2025 08:20 BST - Written by Ben Hughes

STORY LINK Pound Sterling Rises vs Euro, Dollar on Surprise UK GDP Beat

The British Pound Sterling edged higher against the Euro and U.S. Dollar after the latest UK GDP data was stronger than expected, underpinning confidence in the near-term outlook.

The data boosted GBP exchange rates, although risk appetite was slightly less favourable, which curbed the potential for further Sterling buying.

The Pound to Dollar exchange rate (GBP/USD) advanced to 1.3285 from 1.3260 with the Pound to Euro exchange rate (GBP/EUR) nudging higher to 1.1865 from 1.1855.

UK GDP was reported as growing 0.2% for March after a 0.5% expansion the previous month and compared with consensus forecasts of a flat reading for the month.

Industrial production declined 0.7% on the month, but construction output grew 0.5% with 0.4% growth in services driving the expansion.

On a quarterly basis, GDP grew 0.7% for the first three months of the year after a 0.1% gain for the fourth quarter of 2024 and compared with expectations of 0.6% growth.

Services grew 0.7% for the quarter with a 1.1% gain for industrial production, but there was no growth in the construction sector.

Given the first-quarter strength, there is no possibility of a technical recession for at least another six months.

The stronger growth data will also have some positive impact on the fiscal outlook, although underlying pressures will still be important.

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TAGS: Pound Sterling Forecasts