The pound climbed above $1.374, its highest since October 2021, driven by a weakening US dollar. The dollar slipped amid concerns over the Fed’s independence and speculation that President Trump may soon name a successor to Chair Powell, raising the chance of earlier rate cuts. In the UK, BoE officials reaffirmed a downward rate path. Governor Bailey cited signs of slack in the labor market, including slower wage growth and rising inactivity, while Deputy Governor Ramsden said these factors led to his recent vote for a rate cut, warning inflation could fall below target. Meanwhile, the ongoing ceasefire between Israel and Iran reduced fears of a wider conflict, calming inflation concerns and boosting investor sentiment.