The British pound is holding near its highest level against the dollar in a year, driven by a weakening U.S. dollar as investors anticipate potential interest rate cuts by the Federal Reserve. The pound remained steady at USD1.3025, just below Tuesday's peak of USD1.3054. The dollar's decline is tied to falling U.S. bond yields, which have made Treasuries less appealing. Despite this, the pound remains the strongest G10 currency this year, supported by economic growth and political stability in the UK. Investors are closely watching upcoming U.S. labor market data and Fed Chair Powell’s speech for further market cues.