GBP Slips as Hawkish Fed Outlook Boosts USD

The British Pound (GBP) slipped against the US Dollar (USD) on Monday as hawkish sentiment surrounding the Federal Reserve's policy outlook boosted the greenback.

The GBP/USD pair lost ground, hovering around 1.3390 during Asian hours, after registering modest gains in the previous trading day.

The Federal Reserve delivered a 25-basis-point rate hike last week, its first hike in three years, as officials sought to curb inflation and flagged more hikes in the coming months.

Fed Chair Kevin Warsh stated that 'the plain fact is that inflation is too high and has been for too long,' with markets now pricing in nearly a 56.5% chance of another US rate hike when the Fed meets next in October, compared to nearly 42.5% a week ago.