GBP/USD PEAKS ABOVE 1.3000 ON UK GDP BEAT, DXY BREAKS PSYCHOLOGICAL 100.00 BARRIER
GBP/USD PEAKS ABOVE 1.3000 ON UK GDP BEAT, DXY BREAKS PSYCHOLOGICAL 100.00 BARRIER
The British Pound (GBP) surged against the U.S. Dollar (USD), with the GBP/USD currency pair surpassing the 1.3000 mark.
This movement was primarily driven by stronger-than-expected UK economic data and a weakening U.S. Dollar Index (DXY), which fell below the critical 100.00 level.
In February 2025, the UK economy expanded by 0.5%, significantly outperforming forecasts of a 0.1% increase.
This growth, the strongest in 11 months, followed a flat performance in January.
The expansion was broad-based, with notable contributions from manufacturing, construction, and services sectors.
Experienced a 2.2% rise, driven by gains in electronics, pharmaceuticals, and automotive production.
Increased by 0.4%, supported by government initiatives in housing and infrastructure.
Grew by 0.3%, with significant performances in computer programming, telecommunications, and car dealerships.
The robust GDP data bolstered investor confidence in the British economy, leading to increased demand for the Pound.
This demand propelled the GBP/USD pair above the 1.3000 threshold, marking a significant milestone in recent trading sessions.
The U.S. Dollar Index, which measures the dollar's strength against a basket of currencies, declined to levels below 100.00.
This decline was influenced by market reactions to U.S. trade policies, including the announcement of new tariffs, and expectations of Federal Reserve monetary easing.
