GBP Edges Higher as Traders Eye UK GDP Data
The British Pound (GBP) has seen modest gains to near 1.3500 against the US Dollar (USD) in early Asian trading hours on Thursday.
This move comes after a tame reading of the US inflation report, which reduced the possibility of an interest rate hike from the US Federal Reserve (Fed) next month.
Traders are now closely monitoring the preliminary reading of the UK Gross Domestic Product (GDP) for the second quarter (Q2), due later on Thursday. The UK economy is projected to grow 0.4% QoQ in Q2, after posting a strong 0.6% GDP increase in Q1.
A stronger-than-expected outcome could provide support to the Cable. Meanwhile, UK Prime Minister Andy Burnham warned that the UK economy could barely grow next year if disruption in the Strait of Hormuz continues until the end of 2026. Internal modelling from the Treasury suggested UK GDP could see growth as low as 0.3% in 2027.