GBP/USD Rallies on Stronger-Than-Expected UK GDP

The GBP/USD pair rose slightly on Wednesday after stronger-than-expected UK GDP data showed growth of 0.5% in Q2, beating the initial estimate of 0.4%. This makes the UK the fastest-growing G7 economy in the first half of the year.

The uptick in the pair comes as US dollar bulls pause for breath, with Treasury yields retreating and Fed rate hike expectations pulling back from a high of 70% to 40%.

However, traders are still pricing in over a 90% probability that the Fed will raise borrowing costs by the end of the year, which could limit any pullback in the US dollar.