The Pound Sterling has jumped sharply in response to surprisingly strong UK GDP growth data. The positive figures have instilled a renewed sense of confidence in the British economy, prompting investors to buy Sterling.

Market Reaction

Currency analysts noted the immediate impact of the GDP release on the foreign exchange markets. The Pound gained significant ground against both the Euro and the US Dollar.

Key Factors

• Stronger than anticipated growth in the service sector.
• Increased consumer spending.
• Positive revisions to previous growth estimates.

The better-than-expected GDP figures suggest that the UK economy is on a more solid footing than previously anticipated. This has led to speculation about potential interest rate hikes by the Bank of England sooner than expected.