Pound Strengthens Against Dollar After UK August GDP Beats Forecasts With 0.1% Growth

Sterling gained ground to trade around $1.3251 against the US dollar after the Office for National Statistics reported UK gross domestic product expanded 0.1% month-over-month in August, beating forecasts of a 0.1% contraction. Although growth slowed from July's 0.4% increase, annual GDP grew 2.1% and rolling three-month expansion reached 0.7%. Growth was driven by a 1.2% rise in manufacturing output, while services stalled at 0.0% and construction shrank 0.2%. The upbeat data supported expectations of a potential Bank of England rate hike, while a pullback in the US dollar further buoyed GBP/USD.