The Pound Sterling advances by 0.22% even though the US economy grew faster than previously reported in Q1 of 2026, while inflation readings suggest that the Federal Reserve needs to tighten policy.
The GBP/USD trades at 1.3194, after bouncing off daily lows of 1.31511
GBP/USD gains as Dollar profit-taking offsets strong US data The US Dollar treads water even though the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, expanded by 3.4% YoY as expected, up from 3.3% in April, implying that further tightening is needed. The US Dollar Index (DXY), which tracks the buck’s value against six currencies, is down 0.17% at 101.41. US Treasury yields are also down, with the 10-year T-note yield down 2 basis points to 4.378%.
US Gross Domestic Product (GDP) figures for Q1 2026 rose by 2.1% QoQ, exceeding estimates and the previous 1.6% print. Initial Jobless claims for the week ending June 20 dipped from 226K to 215K below estimates, while Durable Goods Orders contracted -4.5% as expected, down from 8% gain in the previous month. Given the backdrop, the Greenback was expected to extend its rally, but traders seem to be booking profits as money markets trimmed Fed hawkish bets for 2026.