Sterling rose in European trade on Thursday against a basket of major rivals, resuming gains against the US dollar after a short hiatus and on track for a week high ahead of important UK growth data.

The data will likely provide important clues on the odds of a UK interest rate cut in June amid current division in the Bank of England on the path ahead for monetary easing.

The Price

The GBP/USD price rose 0.2% today to $1.3287, with a session-low at $1.3258.

The pound lost 0.35% on Wednesday against the dollar on profit-taking away from a week high at $1.3361.

UK Rates

Last week, the Bank of England cut interest rates by 25 basis points to 4.25%, the lowest since March 2023, marking the fourth such UK rate cut since the current cycle of policy easing started in August 2024.

The vote split was unexpected, with 5 members voting in favor of the cut and 2 voting in favor of a deeper 0.5% cut, while two voted in favor of holding rates unchanged.

The odds of a UK 0.25% interest rate cut in June stood at 30%.

UK Growth

Now investors await important UK GDP growth data later today, expected to highly impact the monetary policy decision.

UK GDP growth is expected at 0.6% in the first quarter, up from a 0.1% rise in the previous quarter.

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