GBP/USD Falls as Fed Rate Hike Looms and Middle East Tensions Rise
The Pound US Dollar (GBP/USD) exchange rate fell on Monday due to expectations of a Federal Reserve interest rate hike this week, which boosted demand for the 'Greenback'.
The US Dollar gained ground as traders moved into the 'Greenback' ahead of the Federal Reserve's interest rate announcement on Wednesday evening.
The safe-haven US Dollar also benefited from growing risk aversion, which was triggered by tensions in the Middle East.
The Pound struggled for direction, with Sterling traders keeping their powder dry ahead of a packed week of UK economic developments.