The British pound extended its gains for a third consecutive day on Wednesday, hitting a three-week high as stronger-than-expected economic data and improved EU relations boosted sentiment. The UK economy grew 0.6% in Q1 – its fastest pace in a year – while recent trade agreements with Europe have eased post-Brexit tensions.
The robust growth has reduced expectations for a June rate cut by the Bank of England, with traders now awaiting April inflation data for further policy clues. A higher inflation reading could prompt markets to further delay rate cut projections.
While the pound broke through key resistance at $1.27, analysts caution the rally’s sustainability depends on whether the economic momentum continues into Q2. The currency’s next moves will hinge on upcoming data releases and central bank signals.
Related topics：
