Investors weigh Fed and BoE policy signals as the pound slides to 1.3277, its weakest level in over three weeks.
The British pound declined to 1.3277 against the US dollar in European trading, marking its lowest level in over three weeks. Selling pressure intensified as the US dollar strengthened ahead of the Federal Reserve’s policy announcement on Wednesday.
The US Dollar Index (DXY) reached a fresh monthly high of 101.64, supported by a 62% market expectation that the Fed will hold interest rates at 3.50%-3.75%. Traders are also monitoring the Bank of England’s decision on Thursday, where rates are expected to remain unchanged at 3.75%.
Investors await Fed Chair Kevin Warsh’s press conference for clues on future policy direction, particularly in light of recent comments from US President Donald Trump urging rate cuts.