The British pound gained modestly to $1.347 after a survey showed UK businesses experiencing their strongest month in a year, driven by a rebound in the services sector. The data followed a hot inflation print, which had only briefly lifted sterling, as analysts noted the rise largely reflected higher airfares rather than broad-based price pressures. The inflation numbers are unlikely to alter the Bank of England’s policy path significantly. Money markets now see less than a 50% chance of a rate cut before end-2025, with only about a 36% probability of a quarter-point reduction this year and the next cut likely priced in for spring 2026. Sterling has risen nearly 8% against the dollar in 2025.