GBP Struggles as BoE Decision Looms Amid Hawkish Fed Stance

The British Pound (GBP) is struggling to gain traction against the US Dollar (USD), trading near its lowest level since July 30 at around 1.3380-1.3375.

Traders are waiting for the Bank of England's (BoE) interest rate decision, with policymakers expected to keep rates steady but signal a potential hike in November.

The US Federal Reserve's (Fed) hawkish stance and geopolitical risks due to the Middle East conflict are underpinning the USD, making it difficult for the GBP/USD pair to recover.

Analysts at MUFG/BTMU expect a 'fairly hawkish hold' from the BoE, using the decision to signal a rate hike in November if energy prices remain elevated.