The UK has released economic growth figures (Gross Domestic Product/GDP) that have influenced the movement of GBPUSD during trading on Thursday (February 13, 2025).
The preliminary GDP for the fourth quarter of 2024 has been reported to have increased by 1.4% year-on-year (YoY), which is significantly higher than the forecast from Trading Central and the prior quarter’s growth rate of 1% YoY.
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Following this report, GBPUSD climbed to 1.25170, marking a daily high. In comparison to the closing figures from Wednesday, GBPUSD surged by 740 points (74 pips).
This data indicates that the UK economy ended 2024 on a strong note and could lead the Bank of England (BoE) to adopt a more cautious approach regarding interest rate cuts. While aggressive rate cuts could boost economic growth, they also carry the risk of igniting inflation.
The sustained high interest rates have generated positive sentiment for GBPUSD. Additionally, this currency pair has also benefited from optimism surrounding the potential resolution of the Russia-Ukraine conflict.
It has been reported that US President Donald Trump has spoken with Russian President Vladimir Putin, indicating that negotiations aimed at ending the war are set to commence soon.
