The British pound fell to $1.321 on Thursday, its weakest level since May 12, as concerns about the UK’s economic outlook and expected rate cuts weighed on sentiment. Investors are increasingly pessimistic about the British economy, especially in contrast to the US, where data has been stronger. Recent figures, including solid second-quarter GDP growth and job gains, have boosted confidence in the US economy. Meanwhile, markets are pricing in two more interest rate cuts from the Bank of England this year, compared to a much lower likelihood of cuts from the Federal Reserve. Sterling is down 3.7% in July, its worst monthly performance since September 2022, as fiscal concerns and slowing growth continue to cloud the outlook for the pound.