Pound pushes higher after Q1 GDP beats forecast
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Daily Currency Update
The pound rallied earlier this morning as the first estimate for growth in the first quarter of 2025 beat estimates coming in at 0.7% versus expectations of 0.6%. The monthly reading for March released at the same time also overshot showing 0.2% growth when a flat reading was eyed. It should be noted that this extra output was before Chancellor of the Exchequer, Rachel Reeves's additional National Insurance changes came into effect as well as most of Donald Trump’s tariffs. With these headwinds, as well as the huge geopolitical uncertainty re: Russia/Ukraine in the Middle East and elsewhere this could be the high-water mark, however it is good news for the UK economy none-the-less. GBP/USD touched 1.33 after the release, however has since retreated. GBP/EUR holds around 1.1850.Key Movers
This afternoon we have Retail Sales data from the US with a keen eye on whether the US consumer will have tightened their belts in the face of the extra charges being implemented on imports by Donald Trump. Before that we have the first estimate for Q1 growth for the Eurozone with holders of the single currency hoping the UK's performance is replicated in the bloc. EUR/USD trades around 1.12.Expected Ranges
- GBP/USD: 1.3230 - 1.3360 ▲
- GBP/EUR: 1.1790 - 1.1900 ▲
- GBP/AUD: 2.0560 - 2.0740 ▲
- EUR/USD: 1.1145 - 1.1260 ▼