Sterling's Rebound Tested by US Inflation Data and Fed Rate Outlook
Sterling's rebound has found some support from an upward revision to the United Kingdom's second-quarter growth, according to StoneX Media Senior Market Analyst Michael Boutros. The British pound faced a close test between domestic growth support and a potentially shifting U.S. rate outlook as the week, month, and quarter closed together.
The key themes include sterling receiving support after the UK's second-quarter GDP was revised to 1.4% year on year from 1.2%. The analysis linked this revision to the market turn, with Boutros saying 'an upward revision for the second quarter GDP out of the UK offering some support here.'
The British pound's response shows how a domestic data surprise can cushion a technical decline without confirming a change in trend. However, the next directional test remained unresolved as United States employment and inflation figures approached.