The pound reached its highest level against the dollar in nearly four years after reports indicated that President Donald Trump might accelerate the appointment of the new head of the Federal Reserve.

• Pound rose above $1.37, its strongest since October 2021.
• Jerome Powell, the current chair of the Federal Reserve, faces potential replacement amidst concerns over his independence.
• Trump criticized Powell as “terrible” and mentioned he is considering “three or four” candidates for the role, raising fears about the influence on monetary policy.

During a summit in The Hague on June 26, NATO leaders agreed to increase defence spending to **5%** of their countries’ GDP by **2035**, a decision touted as a “big win” by U.S. President Donald Trump.

• 5% defence spending commitment by **2035**.
• NATO and its leaders, including Mark Rutte, emphasized unity against security threats.
• The summit saw *no condemnation* of Russia's invasion of Ukraine, unlike the previous year.