GBP/USD Hits Lowest Level Since Early July Amid Fed Hike Bets
The British pound has been struggling against the US dollar for a fourth straight day, hitting its lowest level since early July. The GBP/USD pair is currently trading around 1.3230-1.3225, with the dollar holding near a nearly two-week high due to expectations of another Federal Reserve rate hike.
The US business activity has accelerated for a fourth consecutive month in September, reaching its fastest growth rate since July 2021, according to an S&P Global update. This has kept the benchmark 10-year US Treasury yield close to its highest level since 2007, supporting the dollar's strength.
The Bank of England's cautious stance on monetary policy and a mixed UK business activity release have also contributed to sterling's decline. Technically, the pair remains below the 100-day SMA and under the 78.6% Fibonacci retracement, with support at 1.3139.