• The Pound Sterling moves higher as the UK's GDP growth for the second quarter was in line with estimates.
• Easing UK service inflation has resulted in a big relief for BoE policymakers.
• A moderate increase in US inflation has set the stage for a Fed rate cut in September.

The Pound Sterling (GBP) exhibits a strong performance against its major peers, except the Australian Dollar (AUD), in Thursday’s London session. The British currency gains further as the United Kingdom (UK) Office for National Statistics (ONS) has reported that the economy expanded in line with expectations in the second quarter of this year.

The flash Gross Domestic Product (GDP) report showed that the UK economy grew by 0.6% and 0.9% on a quarterly and an annual basis, respectively. The pace at which the economy grew in the second quarter was somewhat slower than the growth rate recorded in the January-March period, but still robust. The UK economy flatlined in June compared with the previous month, as expected.

A decent growth rate and ebbing price pressures are a big relief for Bank of England (BoE) policymakers, who were worried that maintaining higher interest rates for a longer period due to stubborn inflation could escalate the burden on households and the broad economy.