The British pound fell to $1.362, a two-week low, amid growing concerns over the UK’s fiscal outlook. Chancellor Rachel Reeves hinted at possible tax hikes in the autumn budget to address a public finance gap, telling The Guardian she wouldn’t rule them out. This follows Labour’s retreat on welfare reforms to avoid internal rebellion, with Reeves admitting there were costs to those concessions. On monetary policy, markets still expect the Bank of England to cut rates by 25 basis points in September. Meanwhile, global trade tensions added to pressure after President Trump confirmed that new reciprocal tariffs will take effect August 1. Treasury Secretary Scott Bessent noted tariffs would revert to April 2 levels for countries without a deal by then. Trump also warned of an extra 10% tariff on nations supporting the "anti-American policies of BRICS".