The British pound dropped over 2% against the US dollar this week amid leadership turmoil and shifting rate hike expectations.
The GBP/USD pair declined more than 2% this week, breaking below the 1.3400 level as political uncertainty and evolving monetary policy bets pressured the pound. The drop reflects growing concerns over leadership stability and investor sentiment toward UK rate adjustments.
Prior to this week, the pair had traded near 1.3400, but mounting speculation around potential rate hikes and domestic political risks accelerated the sell-off. The move exposes lower support levels, with traders eyeing the 1.3300 handle as the next target.
Market reaction has been cautious, with investors monitoring developments in UK politics and central bank signals for further direction.