The British pound held around $1.35 as investors weighed stronger-than-expected UK GDP data ahead of next week’s Bank of England policy decision. UK GDP grew 0.4% month-on-month in July, beating forecasts, while growth over the three months to July also held at 0.4%. Markets expect the BoE to leave rates unchanged next week after Governor Andrew Bailey said on Tuesday that future decisions would depend on economic and geopolitical developments, pushing back against the view that another rate hike is inevitable. Still, markets are fully pricing four BoE rate increases by mid-2027 as the recent oil price rally kept inflation concerns elevated. In the US, the dollar remained supported by growing expectations of a Federal Reserve rate hike next Wednesday following stronger-than-expected core inflation data and signs of a resilient labor market.