The British pound gave back early gains to slip back toward $1.36, its weakest level since June 23, as investors rushed to the dollar following a stronger-than-expected US jobs report. Earlier in the session, sterling had been supported after Prime Minister Keir Starmer defended Chancellor Rachel Reeves amid speculation about her future, affirming she would remain chancellor “for a very long time to come.” This helped ease concerns that a potential replacement might adopt a looser fiscal stance with increased borrowing. On the monetary policy front, markets have priced in a Bank of England rate cut as soon as August, following dovish remarks from officials. Governor Bailey said it was too early to fully assess the inflationary impact of tariffs but reiterated that the trajectory of interest rates is “downwards.” Meanwhile, BoE policymaker Alan Taylor urged faster rate cuts, warning of a heightened risk of a hard landing for the UK economy.