GBP Bounces from Two-Month Low as UK GDP Beats Expectations

The British Pound (GBP) has risen from its two-month low against the US Dollar (USD), touching the 1.3260 area following the release of the final UK GDP print.

The Office for National Statistics reported that the UK economy grew by 0.5% in the second quarter of 2026, an upward revision from the initial estimate of 0.4%. This data reinforces market bets for a 25-basis-point (bps) rate hike by the Bank of England (BoE) at its upcoming meeting on November 5.

The US Dollar is being pressured by retreating US bond yields and dovish remarks from New York Federal Reserve President John Williams, who stated that the central bank need not rush its next move.