GBP Struggles Against USD Amid BoE-Fed Divergence

The British Pound (GBP) continues to struggle against the US Dollar (USD), trading near its July lows amid concerns over stagflation and a more cautious approach from the Bank of England (BoE).

In contrast, the US Federal Reserve (Fed) raised interest rates for the first time in three years and signaled another hike this year, creating a divergence between the two central banks' outlooks.

This has led to a bearish fundamental backdrop for the GBP/USD pair, with spot prices trading below 1.3300 during the Asian session and vulnerable to further decline.

Traders are now looking ahead to the release of flash PMIs from the UK and US for a fresh impetus, as well as speeches from influential FOMC members that could drive the USD.