The British pound climbed back above $1.34, benefiting from a weaker US dollar after disappointing labor market data reinforced expectations of Federal Reserve rate cuts in September. The JOLTS report showed job openings fell by 176,000 to 7.18 million in July, the lowest since September 2024 and well below forecasts of 7.4 million. At home, the pound’s outlook remains clouded by fiscal uncertainty ahead of the Autumn Budget, where Finance Minister Rachel Reeves is under pressure to announce tax hikes or spending cuts to meet fiscal targets. Meanwhile, BoE Governor Andrew Bailey told MPs there is “considerably more doubt” about when UK rates can be reduced. Markets no longer expect another rate cut this year, with the next fully priced in for April.