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British Pound remains muted as UK monthly GDP rises 0.1%, as expected

  • The British Pound remains flat against its currency peers after the UK GDP data release.
  • The UK GDP growth arrives at 0.1% MoM, as expected, after contracting at a similar pace in April.
  • UK incoming PM Andy Burnham will likely name Shabana Mahmood as new FM.

The British Pound (GBP) remains almost muted against its major currency peers after the release of the monthly United Kingdom (UK) Gross Domestic Product (GDP) data for May. The Office for National Statistics (ONS) has reported that the economy expanded 0.1%, as expected, after contracting at a similar pace in April.

Signs of improving UK economic growth would be favorable for the British Pound in the near term

Meanwhile, the UK Industrial Production data for May has come in weaker than projected. The data contracted at a pace of 0.5% Month-on-Month (MoM), stronger than 0.1% estimates. In April, the data was expanded by 0.2%, revised higher from 0%.

Broadly, the British Pound trades firmly amid reports that incoming Prime Minister (PM) Andy Burnham will name Shabana Mahmood as Finance Minister (FM), who is considered as A fiscal conservative by financial markets, Financial Times (FT) reported.

Pound Sterling Price This week

The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.56%-1.08%0.24%-0.76%-0.71%-1.55%-0.21%
EUR0.56%-0.54%0.84%-0.19%-0.21%-1.01%0.35%
GBP1.08%0.54%1.34%0.33%0.33%-0.47%0.94%
JPY-0.24%-0.84%-1.34%-1.08%-0.96%-1.84%-0.51%
CAD0.76%0.19%-0.33%1.08%0.13%-0.76%0.60%
AUD0.71%0.21%-0.33%0.96%-0.13%-0.80%0.47%
NZD1.55%1.01%0.47%1.84%0.76%0.80%1.42%
CHF0.21%-0.35%-0.94%0.51%-0.60%-0.47%-1.42%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Going forward, major triggers for the Pound Sterling will be the UK employment and inflation data, which are scheduled for next week.

Against the US Dollar, the British Pound holds onto Wednesday’s gains, driven by soft United States (US) Producer Price Index (PPI) data for June, which increase confidence of inflationary pressures waning.

The PPI report showed that the headline producer inflation decelerated to 5.5% from 6% in May, while the data was expected to arrive higher at 6.2%.

Economic Indicator

Gross Domestic Product (MoM)

The Gross Domestic Product (GDP), released by the Office for National Statistics on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in the UK during a given period. The GDP is considered as the main measure of UK economic activity. The MoM reading compares economic activity in the reference month to the previous month. Generally, a rise in this indicator is bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.

Read more.

Last release: Thu Jul 16, 2026 06:00

Frequency: Monthly

Actual: 0.1%

Consensus: 0.1%

Previous: -0.1%

Source: Office for National Statistics

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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