GBPUSD Rises to 1.3310 as Weak US Data Fuels Fed Rate Cut Bets, UK GDP Beats Forecasts

GBPUSD edged higher to 1.3310 during Asian trading on Friday, supported by a weaker US Dollar amid mounting expectations of Federal Reserve rate cuts following disappointing economic data. US PPI rose 2.4% YoY in April, below the 2.5% forecast, while initial jobless claims held steady at 229K. Swap markets now price in a 25 bps Fed rate cut in September, with two more expected by year-end. In contrast, upbeat UK GDP data offered the Pound a lift, with the economy growing 0.7% QoQ in Q1 2025, surpassing estimates. Strong UK growth has tempered expectations for BoE policy easing. Traders now await the University of Michigan Consumer Sentiment Index and US housing data due later in the day.

London equities ended on a mixed note on Thursday. The FTSE 100 index finished up 36.27 points at 8,670.02. The FTSE 250 ended 78.58 points higher to 20,923.34, while the AIM All-Share closed up 1.01 points at 730.84. The Cboe UK 100 ended 0.35% lower at 864.41, the Cboe UK 250 closed slightly higher at 18289.41, and the Cboe Small Companies ended 0.02% higher at 18289.41.