According to Jinshi, as investors reduced their bets on interest rate cuts in the UK, the pound rose to a nearly one-year high against the dollar and a three-week high against the euro. "The probability of a rate cut next month is now only 57%, down from 65% at the beginning of this week," said Catherine Brooks, head of research at XTB, in a report. Increased expectations of a rate cut by the Federal Reserve and a decline in expectations of a rate cut by the Bank of England, coupled with a widening real interest rate gap between the UK and other countries adjusted for inflation, boosted the pound this week. She predicted that the pound-dollar exchange rate could soon rise above 1.30.