The British pound surged to a new high for the year as economic data from both sides of the Atlantic supported a stronger currency. A weaker dollar added to the pound’s momentum. • The GBP/USD pair climbed early Wednesday, breaking into the elevated territory of 2024 highs. The pound sterling crossed above $1.3055 for the first time this year, driven by a wave of positive economic indicators from the UK and the US. The Bank of England has hinted that it may keep interest rates steady at its September meeting to maintain stability in the UK economy. • However, traders are anticipating at least two 25 basis point rate cuts from the current 5% benchmark rate by the end of 2024. Slowing growth in the UK, with the economy expanding by just 0.6% in the second quarter, also contributed to the pound’s rise. This modest growth likely influenced the Bank of England’s cautious approach to aggressive monetary policy aimed at reducing borrowing costs. • In the US, the dollar has been under pressure as traders await the Jackson Hole symposium. This annual gathering of central bankers and financiers is highly anticipated for its market-moving speeches by key financial figures. Federal Reserve Chairman Jay Powell is set to close the event on Friday with comments on interest rates, where traders will seek hints on whether the Fed is leaning towards a 25bps or 50bps rate cut in September.