GBP/USD Surges on Stronger UK Data and Dovish Fed Bets

The British pound gained strength against the US dollar on September 30th, rising by 0.52% to $1.32981. This increase follows a dovish tilt in U.S. Federal Reserve rate expectations and stronger-than-expected UK economic data.

The Office for National Statistics revised UK second-quarter gross domestic product growth higher to 0.5%, up from the initial 0.4% estimate. This upward revision was driven by continued resilience in services and construction activity, defying consensus expectations.

As a result, the Bank of England is likely to maintain a restrictive policy stance for longer, reducing near-term rate cut speculation and providing direct fundamental support for Sterling.