The British pound rose above $1.361, nearing its highest level since January 2022, as the US dollar weakened on expectations of Fed rate cuts and easing geopolitical tensions. Traders increased bets that the Fed may cut rates soon after Chair Jerome Powell said “many paths are possible” and noted that weak inflation or job data could prompt earlier action. In the UK, BoE Governor Andrew Bailey and Deputy Governor Dave Ramsden reinforced that rates are likely to fall, citing signs of slack in the labor market. Bailey pointed to slowing wage growth and rising economic inactivity, though he stressed concerns over the reliability of labor data. Ramsden said labor market loosening was behind his vote for a rate cut, warning it could push inflation below the 2% target. Meanwhile, markets closely monitored the fragile ceasefire between Israel and Iran, which helped ease fears of a broader conflict and potential inflationary shocks.