The British pound fell to $1.336, a two-week low, pressured by a stronger dollar and concerns ahead of the UK’s November budget. Traders are wary that potential tax hikes to meet fiscal targets could weigh on the already fragile economy and the currency. Finance Minister Rachel Reeves, who delivers her budget on November 26, is expected to focus on fiscal discipline, possibly through higher taxes — echoing her previous move that raised 25 billion GBP in employer social contributions. Analysts see modest UK growth for the rest of 2025, with inflation rising to 4%, double the BoE’s target. Markets are not expecting the next BoE rate cut until April next year, with a total of two reductions by end 2026. BoE Chief Economist Huw Pill urged “conservative central banking,” stressing the need to prioritize inflation control over growth interventions, countering calls for a government–BoE partnership to revive investment.