Pound Falls as Dollar Bulls Rebuild Amid UK GDP Slowdown

The British pound (GBP) traded lower on Thursday as UK GDP growth slowed in the second quarter, despite the reading matching economist estimates.

The slowdown was due to a 0.4% growth rate in the second quarter compared to 0.6% in the first quarter, but sterling's move was not driven by domestic fundamentals.

Broad dollar strength contributed to the pound's decline, with the GBP falling 0.01% to $1.3493 and the EUR rising 0.08% to $1.1535 as of 06:04 ET (10:04 GMT).

Francesco Pesole, FX strategist at ING, attributed the dollar's strength to a 'small dovish repricing in Fed rate expectations,' which told markets that they were positioned for a slightly hotter print than consensus.