FX.co ★ Pound Steadies After Stronger-Than-Expected GDP Data

The pound trimmed its losses against the dollar, maintaining a position close to $1.34 following unexpectedly strong growth in the UK's economy. November's GDP revealed a rise of 0.3%, a recovery from the 0.1% decline in October and surpassing the anticipated 0.1% increase. Over the preceding three months up to November, GDP showed a 0.1% growth, challenging the general expectation of a 0.2% decline. Market expectations around monetary policy have shifted modestly: traders are now factoring in about 46 basis points of rate cuts by year-end, with an 84% likelihood of a second 25-basis-point reduction in December. A first rate cut is entirely anticipated by June, with an 88% probability of it occurring in April. Prior to the GDP announcement, market outlooks had accounted for just under 48 basis points of easing for the remainder of the year, including 23 basis points by April.