The British pound held steady above the 1.3500 level against the US dollar on Wednesday, as a wave of stronger-than-expected UK economic data provided a counter-narrative to recent recession fears. Official figures revealed that the UK economy grew by 0.3% in March, sharply defying forecasts for a 0.2% contraction, while manufacturing production jumped 1.2% — its highest in months.
The data, which also saw the services index rise 0.8%, eased immediate concerns about the economic drag from Middle East tensions and political turmoil. The positive surprise lifted investor spirits, with risk assets including cryptocurrencies seeing a modest boost as global sentiment improved.
Although the pound’s resilience was tempered by political uncertainty — Prime Minister Keir Starmer faces pressure after Labour’s local election losses — the macro backdrop turned slightly more favorable. Better-than-expected GDP reduces the urgency for the Bank of England to cut rates aggressively, which could help stabilize fiat flows and encourage carry trades into higher-yielding assets, including crypto.
For Bitcoin and altcoins, the improved UK outlook acts as a tailwind by underpinning broader risk appetite. The GBP/USD’s hold above the psychological 1.3500 support suggests markets are pricing in a less dovish path for global central banks, a scenario that historically has supported risk-on positioning. Crypto traders will now watch for a sustained break above 1.3550 in cable as a sign of building positive momentum that could spill over into digital assets.
