GBP Crumbles Against USD as Markets Eye Federal Reserve Policy Decision

The British Pound has continued its decline against the US Dollar, reaching a three-week low of 1.3277 during the European trading session on Tuesday.

This comes as investors turn cautious ahead of the Federal Reserve's (Fed) monetary policy announcement on Wednesday.

The FedWatch tool suggests that traders see a 62% chance that the Fed will leave interest rates unchanged at 3.50%-3.75% in the policy announcement on Wednesday.

Fed Chairman Kevin Warsh is also expected to address investors in a press conference following the announcement, and his comments are likely to influence market sentiment.