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Sterling climbs as stronger UK GDP strengthens BoE hawkish view

GBP/USD is holding above 1.3550, supported by a weaker US dollar after disappointing US retail sales, according to FXStreet’s commentary.

Reported · Written up by our desk · Major Pairs

FXStreet highlights how stronger-than-expected UK GDP has given “fresh ammunition” to Bank of England hawks, even as policymakers remain reluctant to tighten further, with Rabobank strategist Elwin de Groot pointing to broad-based growth. The note said growth was supported by increases in both investment and GDP per capita, contributing to the shift in tone around UK economic momentum. FXStreet also cited Rabobank strategist Stefan Koopman’s warning that the UK can often post a strong first half before weakening in the second, making 2026’s trajectory a key question. In FX markets, FXStreet said GBP/USD advanced into the American session and was trading at a fresh monthly high above 1.3550, on a push toward a positive weekly close. The outlet attributed part of the move to US dollar weakness after disappointing US retail sales data, which kept downward pressure on the dollar into the weekend. The same FXStreet commentary noted that EUR/USD was trading above 1.1500 and that market pricing had scaled back expectations for a September US rate hike after the July retail sales miss. Separately, it said the University of Michigan’s preliminary August Consumer Sentiment Index is due, with expectations for a decline to 54.5 from 55.2 in July.

Latest closeEUR/USD 1.153 ▼0.1%|GBP/USD 1.349 ▼0.2%

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