The British pound gained modestly against the U.S. dollar on Thursday after data revealed that the UK economy expanded more than expected in March.
According to official figures, the UK’s gross domestic product (GDP) grew by 0.2% in March 2025 compared to the previous month. This surprised economists, who had forecasted no change (0.0%) in growth, based on a Reuters poll.
The positive economic data briefly lifted Sterling, pushing it to $1.328 before easing slightly to $1.327, marking a 0.1% gain for the day. Against the euro, the pound recovered earlier losses and was last seen trading flat at 84.29 pence. Earlier in the week, Sterling reached a six-week high versus the common currency.
This unexpected growth adds to market optimism and could influence the Bank of England’s outlook on monetary policy in the coming months.
