The currency pair falls to a three-week low as the USD strengthens on expectations of a Federal Reserve interest rate increase.
The GBP/USD pair declined to 1.3338 in European trading on Monday, marking its lowest level in nearly three weeks. The drop to 1.3316 reflects broader USD strength amid growing speculation that the Federal Reserve will raise interest rates soon.
Prior to this session, the pair had traded in a tighter range, with recent support near 1.3400. Market consensus had leaned toward a pause in Fed tightening, but recent economic data has shifted expectations toward a potential hike.
No immediate market reaction was specified, but the USD’s outperformance suggests continued pressure on the pair in the near term.