GBP/USD Falls to 12-Week Low Amid Interest Rate Shift

The GBP/USD currency pair has fallen to its lowest level in 12 weeks at 1.3250 after the Federal Reserve's interest rate hike surpassed the Bank of England's Bank Rate.

This marks a significant shift in the interest rate landscape, with the Fed's 3.875% midpoint now above the BoE's 3.75% Bank Rate, giving the dollar an advantage over sterling for the first time this year.

The UK composite PMI has slowed to 51.7, while US services have surged to 58.7, a nine-point difference that points to a widening growth gap between the two economies.