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Sterling little changed after UK GDP rises for second month in a row

GBPUSD 2024 04 12

Expanded manufacturing helped support the British economy in February. The sterling crowds calmed down, there was not the slightest hint on the chart.

Key points:

  • Sterling was little changed following the GDP data.
  • The UK economy grew in February.
  • The pound-dollar got into a zigzag movement.

The pair showed little reaction on Friday morning after the UK released its monthly gross domestic product (GDP) report. The British economy grew a modest 0.1% in February from a month earlier, marking a second month of growth in a row, according to the Office for National Statistics.
Sterling did not try to go anywhere as it remained at $1.2520, which was essentially unchanged that day. Over the past few months, the British currency has been searching for direction, zigzagging between $1.2500 and $1.2900. Speculation in the Forex market revolved mainly around the US dollar.
On the UK side, February data reassured markets that the UK was emerging from a technical recession. The UK economy contracted in the final two months of 2023 while sterling struggled with rising inflation. In the three months to February, GDP grew 0.2% compared with the previous two months.

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