UK economic data released this morning showed that GDP grew by 0.7% in Q1—marking a sharp rebound from the previous quarter's 0.1% increase and exceeding expectations of a 0.6% rise.
The figures help alleviate recent concerns around stagnation in the UK economy and provide a more optimistic outlook, despite looming headwinds such as recently introduced tax increases expected to weigh on Q2 performance. Notably, the UK recorded the strongest GDP growth among all G7 nations in the first quarter.
This improved sentiment has translated into modest gains for the pound, with GBP strengthening against both the euro and the US dollar in early trading today.
Attention Turns to Key US Data This Afternoon
The focus now shifts to the US, where several important economic indicators are due later today, including jobless claims, PPI (Producer Price Inflation), and retail sales. The US dollar has underperformed recently despite positive developments in US-China trade talks, and today’s data could influence near-term USD direction.
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