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Sterling steady as UK GDP upside in June fails to boost BoE odds

TD Securities said June growth lifted only quarterly output to 0.4% q/q, with May revised to flat and no clear signal for near term rate hikes.

Reported · Written up by our desk · Major Pairs

TD Securities pointed to a June upside surprise in UK GDP, which rose 0.3% month over month, supported by services activity expanding 0.4% month over month, while May was revised to flat. It also noted that June was the only positive month in the second quarter.

The firm said quarterly growth reached 0.4% on a quarter over quarter basis, slightly above Bank of England projections, but argued it does not amount to a fundamental growth rebound or provide a clear case for rate hikes.

In FX trading, FXStreet said GBP/USD was treading water around the 1.3500 area as investors weighed mixed UK data alongside other factors, including uncertainty around the US-Iran conflict and the lack of a stronger catalyst from the BoE outlook.

FXStreet added that market participants also assessed broader data and the rate backdrop, with the dollar stabilizing as September Fed hike bets remained subdued, while UK data could still challenge pound strength ahead of additional developments.

Latest closeGBP/USD 1.349 ▼0.1%

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