The British pound strengthened to around $1.342, moving away from a four-week low near $1.338 on January 15, benefiting from renewed pressure on the dollar after President Donald Trump revived tariff threats linked to his push to assert control over Greenland. Trump warned that countries opposing his plans could face trade levies, including several European nations and the UK, prompting European leaders to signal possible retaliation. In the UK, markets have slightly increased expectations for interest rate cuts, with investors now pricing around 44 bps of easing from the BoE by year-end, as tariff risks could slow growth. Attention now turns to a busy week of data, including wages, jobs, inflation, public finances and retail sales. Inflation is expected to tick higher temporarily, but remain on a broader downward trend. The IMF recently reinforced that view, projecting UK inflation to return to the 2% target by the end of the year as the labour market cools.