The British pound climbed above $1.33, reaching its highest point since October 22, driven by a weakening dollar and reduced anticipations for further easing from the Bank of England in 2026. The US Federal Reserve made the expected rate cut while indicating a probable pause in further cuts for January, as policymakers look to additional data to properly assess the economic outlook. The outlook for next week’s Bank of England decision remains steady, with approximately an 84% probability of a rate cut, despite evidence of rising wage growth and ongoing inflationary pressures. Markets are now nearly fully anticipating a subsequent 25-basis-point cut by June, with an estimated 75% likelihood of it happening in April. Investors are keenly awaiting the forthcoming UK monthly GDP figures due on Friday, which could significantly shape market expectations.