The British pound slipped to $1.354 from a two-week high of $1.358 after weaker-than-expected UK PMI data raised concerns about the economy and boosted bets on Bank of England rate cuts. Services and composite readings missed forecasts, signaling a sharper slowdown in private sector growth, while manufacturing showed a smaller-than-expected contraction. Despite a slight rebound in input price inflation, analysts expect the BoE to prioritize growth over inflation due to soft data and a looser labor market. Traders now await retail sales data, expected to rebound thanks to warm weather. Meanwhile, broader market sentiment was lifted by signs of progress on a US-EU trade deal. Reports suggest a 15% tariff agreement is taking shape, with the EU aiming to include autos. President Trump said he won’t accept tariffs below 15% and hinted some could go as high as 50% ahead of the August 1 deadline.