Pound Sterling rebounds slightly as UK GDP reutrns to growth

The Pound Sterling recovers slightly against its peers, following a stronger-than-expected UK GDP data for November.
UK monthly GDP expanded 0.3%, beating estimates of 0.1% and the previous reading of -0.1%.
The US Dollar gains on expectations that the Fed will hold interest rates steady in the meeting later this month.

Sagar Dua FXStreet

The Pound Sterling (GBP) attracts slight bids against its major currency peers on Thursday, following the release of the United Kingdom (UK) monthly Gross Domestic Product (GDP) data for November.

The Office for National Statistics (ONS) has reported that the economy is back into black strongly. The data showed that the GDP growth was 0.3%, faster than estimates of 0.1%. In September and October, the UK economy declined by 0.1% after remaining flat in August.

Strong UK GDP figure is expected to impact the Bank of England (BoE) dovish expectations negatively. At the December meeting, the BoE guided that the monetary policy will remain on a gradual downward path.

On Wednesday, BoE policymaker Alan Taylor stated that he expects “monetary policy to normalise at neutral sooner rather than later,” and “at-target inflation from mid-2026 is likely to be sustainable”.

Meanwhile, UK factory data has also come in stronger than projected. Month-on-month (MoM) Manufacturing Production grew at a robust pace of 2.1% against estimates of 0.5% and the October reading of 0.4%, revised lower from 0.5%. In the same period, Industrial Production rose 1.1%, stronger than expectations of 0.1%, but slower than the prior reading of 1.3%. On an annualized basis, both Manufacturing and Industrial Production unexpectedly gained at a strong pace.

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Canadian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.05%	-0.05%	-0.14%	0.15%	-0.19%	-0.06%	-0.00%
EUR	-0.05%		-0.09%	-0.18%	0.11%	-0.22%	-0.11%	-0.05%
GBP	0.05%	0.09%		-0.09%	0.20%	-0.13%	-0.02%	0.04%
JPY	0.14%	0.18%	0.09%		0.29%	-0.03%	0.05%	0.14%
CAD	-0.15%	-0.11%	-0.20%	-0.29%		-0.32%	-0.22%	-0.15%
AUD	0.19%	0.22%	0.13%	0.03%	0.32%		0.12%	0.18%
NZD	0.06%	0.11%	0.02%	-0.05%	0.22%	-0.12%		0.06%
CHF	0.00%	0.05%	-0.04%	-0.14%	0.15%	-0.18%	-0.06%

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).

Daily Digest Market Movers: US Dollar trades firmly as Fed to hold interest rates this month

Earlier in the day, the Pound Sterling was under pressure as market sentiment remained risk-off due to renewed tariff tensions. On Wednesday, United States (US) President Donald Trump imposed 25% tariffs on imports of some advanced computing chips by the White House, which include the Nvidia H200 AI processor and a similar semiconductor from AMD called the MI325X.
Still, Sterling trades lower against the US Dollar around 1.3425 during the European trading session on Thursday as the US Dollar strengthens on expectations that the Federal Reserve (Fed) will hold interest rates steady in the next meeting.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.15% higher to near the monthly high of 99.26.
According to the CME FedWatch tool, the Fed is certain to leave interest rates unchanged in the range of 3.50%-3.75% at the January policy meeting, indicating a pause in the monetary-easing campaign. In the last three meetings, the Fed delivered three consecutive 25-basis-point interest rate cuts (bps) amid weak job market conditions.
The speculation that the Fed will leave interest rates steady is backed by expectations that the impact of the latest cuts is yet to be seen in the economy. Also, the US Consumer Price Index (CPI) data for December showed on Tuesday that price pressures grew steadily.
On Wednesday, Atlanta Fed Bank President Raphael Bostic emphasized the need to maintain a restrictive monetary policy stance in the near term, citing that the “inflation challenge has not been won yet".

Technical Analysis: GBP/USD holds 50% Fibonacci retracement at 1.3400

GBP/USD trades lower to near 1.3436 at the time of writing. The 20-day Exponential Moving Average (EMA) at 1.3438 has flattened after a steady ascent, with price hovering around it.

The 14-day Relative Strength Index (RSI) at 51.70 is neutral, indicating balanced momentum.

Measured from the 1.3793 high to the 1.3009 low, the 61.8% Fibonacci retracement at 1.3494 caps the rebound, while the 78.6% Fibonacci retracement at 1.3625 looms overhead. A topside breach could extend the recovery toward the September 2025 high of 1.3726, whereas rejection would keep range-bound trade around the 20-day EMA.

(The technical analysis of this story was written with the help of an AI tool.)

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.

EUR/USD weakens below 1.1650 as strong US data boosts Fed hold outlook

EUR/USD extends its losses for the third consecutive session, trading around 1.1640 during the Asian hours on Thursday. The pair loses ground as the US Dollar advances as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.

GBP/USD holds above 1.3400 after UK GDP data

GBP/USD holds above 1.3400 in European trading, fading a spike to near 1.3450. The pair jumped on the upbeat UK growth and industrial data but failed to hold the uptick amid a broadly firmer US Dollar. The focus now turns to the mid-tier US data releases for further directives.

Gold remains near $4,600 due to Fed rate pause bets, easing tensions

Gold loses ground after hitting a fresh record high of $4,643 in the previous session, trading around $4,600. The non-interest-bearing Gold lost ground as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.