UK Economy: Pound Sterling Tests 1.30, GDP Boost Eclipsed by US Dollar Slide

April 11, 2025 - Written by Frank Davies

STORY LINK UK Economy: Pound Sterling Tests 1.30, GDP Boost Eclipsed by US Dollar Slide

The Pound Sterling (GBP) is currently testing 1.30 against the US Dollar (USD) after the latest data provided some positive news on the UK economy with a rebound in growth for February. The GBP/USD exchange rate is quoted at 1.29946.

The overall impact on the Pound was limited with markets focussed on trade developments and further sharp moves across all asset classes. There were also concerns that the on-going trade wars would damage the economy in the second quarter.

The dollar posted sharp losses during Friday’s Asian session with the Euro again proving to be a major winner in global markets.

The Pound to Dollar (GBP/USD) exchange rate traded just below 1.3000 from overnight highs near 1.3050 with the Pound to Euro (GBP/EUR) exchange rate sliding to 15-month lows below 1.1500 at one point before recovering to trade just above this level.

According to the ONS, UK GDP posted 0.5% growth for February compared with consensus forecasts of 0.1% while the January figure was revised to no change from the flash reading of -0.1%.

The services sector posted a 0.6% gain for the month with a strong 1.5% rebound in industrial production while construction posted a 0.4% monthly advance.

The UK recorded a goods trade deficit of £20.8bn for the month after an £18.2bn deficit the previous month. This was the widest deficit since August 2022, but a wider surplus in services helped improve the wider trade account.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Pound Dollar Forecasts