United Kingdom: Pound Holds at Two-Week High.

The pound held at $1.335, its highest in two weeks, with a 1% weekly gain as the dollar weakened on disappointing US jobs data. The US added just 57,000 jobs last month, far below forecasts, while unemployment fell to 4.2% as workers left the labor force. The pound’s gains were limited by the Bank of England’s dovish stance. Governor Andrew Bailey highlighted a slowing UK economy and stated that the BoE would not rush to respond to rising oil prices. He noted that inflation remains on track to reach 2%, though later than previously expected, while also ruling out near-term rate cuts. Meanwhile, Fed Chair Kevin Warsh acknowledged easing inflation expectations but reaffirmed the Fed’s commitment to its 2% target. In UK politics, markets weighed the likelihood of Ed Miliband becoming Chancellor, with fiscal concerns easing after Andy Burnham’s discipline pledge. Sterling is unlikely to see major political impact until late July, when Burnham is set to become Prime Minister.