Pound Holds Ground Amid Unexpected UK Economic Growth

The UK pound held steady on Thursday and remained on track for its third weekly gain as market confidence in the country's economy was reinforced by data showing unexpected growth in June.

Data from the Office for National Statistics revealed that gross domestic product rose by 0.3% during the month, putting Britain on course for the strongest growth among the Group of Seven rich economies in the first half of 2026.

The growth was driven by consumer spending and business investment, rather than government stimulus, according to Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets. 'Putting your head under the bonnet of the UK economy suggests that the momentum is perhaps a little more robust and a little more dynamic than we might have assumed,' he said.

The Bank of England still expects one rate rise this year, despite recent data doing little to change expectations. Next week's inflation data could be influential in shaping expectations for monetary policy, with some analysts suggesting it may not shift the BoE's assessment.