GBP Hammered by Dollar Strength Ahead of Potential BoE Rate Hike

The British pound has taken a hit against the US dollar due to broad dollar strength, but managed to find support above the critical 1.32 level.

Markets are increasingly confident that the Bank of England will raise interest rates in November, with swaps pricing in almost an 80% chance of a hike.

The UK economy has shown resilience, expanding by 0.5% in the second quarter, but is expected to slow down due to rising energy prices, inflation, and higher interest rates.