The British Pound (GBP) is giving away previous gains against the US Dollar (USD) on Tuesday, weighed by the downward revision of the UK’s Q1 Gross Domestic Product (GDP) data.
The GBP/USD pair is trading just above session highs at 1.3222 at the time of writing after failing to break above the top of last week’s trading range, at the 1.3270 area
UK economy grew at a 0.6% pace in the first three months of the year, according to the final estimation released by the Office for National Statistics. These figures have been left unchanged from previous estimates, but the year-on-year rate has been revised down to 0.9%, from the previously estimated 1.1%. The quarterly expansion has been broad-based, with the Services sector leading the advances, and with manufacturing and construction growing in unison.
On the negative side, real household disposable income fell by 0.8% in the first quarter of the year, after rising 1.2% in the last quarter of 2025. Beyond that, the political impasse in the UK is putting additional pressure on the Cable. Andrew Burnham, the best-positioned candidate to replace Keir Starmer at Downing Street, pledged to “lift the country back up” while sticking to Rachel Reeves’ fiscal rules, but the market awaits his first decisions to take positions on the Pound.