Sterling rose in European trade on Friday against a basket of major rivals, moving in a positive zone for the second straight session against the US dollar and on track for a new weekly profit following strong UK data.

The UK economy grew by the best pace in a year during the first quarter of 2025, heaping more pressure on Bank of England policymakers and hurting the odds of a UK June rate cut.

The Price

The GBP/USD price rose 0.15% today to $1.3319, with a session-low at $1.3299.

The pound rose 0.35% yesterday against the dollar, marking the second profit in three days following strong UK data.

Weekly Trades

The pound is up 0.25% so far this week on the dollar, on track for the second weekly profit in a row.

UK Economy

Earlier UK data showed the GDP growth rate at 0.7% in the first quarter of 2025, the best rate in a year, and up from a 0.1% growth rate in the previous quarter.

The economy is expected to expand even further, especially after the UK government reached a major trade deal with the US in recent days.

UK Rates

Following the growth data, the odds of a UK 0.25% interest rate cut in June fell from 30% to 25%.

The recent Bank of England vote in favor of a rate cut last week showed clear divisions between members on the path of policy easing.

Interest Rate Gap

Following the central banks meetings last week, a 0.25% interest rate between the UK and the US emerged once more in favor of the US, but could disappear quickly in upcoming months as the Fed prepares for rate cuts while the BOE is poised to hold rates steady.

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