GBP Falls to New Low as Fed Officials Push for Another Hike

The British Pound (GBP) has set a new September low against the US Dollar (USD), falling to just above 1.3300. This move comes as Federal Reserve officials argue for another interest rate hike before the end of the year.

The UK's Bank Rate, which is currently at 3.75%, is below the Fed's midpoint of 3.875%. This has led to a stronger USD and a weaker GBP, making it more attractive for investors to hold dollars rather than pounds.

Sixteen out of eighteen Fed officials expect at least one more rate hike this year, which would further strengthen the dollar against the pound. The Bank of England (BoE) is expected to make a decision on interest rates soon, with three members voting in favor of a hike and six opposing it.

The UK's services survey, due out on Wednesday, is also likely to influence the pound's value. A weaker reading could argue for a rate hike, while a stronger one might help boost the pound.