UK Preliminary GDP increases by 0.1% QoQ in Q4 2025 vs. 0.2% expected

💡 DMK Insight

The UK economy’s sluggish growth of 0.1% in Q4 2025 raises concerns for traders: This tepid expansion, mirroring Q3’s performance, suggests underlying weaknesses that could impact the GBP and related assets. Traders should keep an eye on how this affects Bank of England policy, especially if inflation remains stubbornly high. A lack of robust growth could lead to a more dovish stance, potentially weakening the pound further. Additionally, this economic backdrop may influence the forex market, particularly against the USD and EUR. If the trend continues, we might see increased volatility in GBP pairs, especially if key support levels are breached. Watch for any shifts in market sentiment around the next BoE meeting, as traders reassess their positions based on economic indicators. The real story is whether this growth can sustain itself or if it signals a broader economic malaise.