GBP/USD Rises as Stronger UK Growth Fails to Offset Dollar's Advantage

The British pound (GBP) has made modest gains against the US dollar (USD) as stronger-than-expected UK economic data provided some relief to sterling.

The Office for National Statistics reported that UK GDP growth in Q2 was upgraded to 0.5% in the three months to June, surpassing the initial estimate of 0.4%. This follows a growth rate of 0.6% in Q1, making the UK the fastest-growing G7 economy in the first half of the year.

The uptick in GDP is attributed to consumer spending, which continued even as oil prices rose due to the Middle East conflict and added to inflationary pressures.

However, the outlook for the second half of the year remains uncertain, with growth expected to slow to 0.2% in Q3 and Q4 amid rising living costs.