GBP/USD Hits Six-Week Low as BoE Decision Looms Amid Hawkish Fed

The GBP/USD has fallen to a six-week low due to a stronger dollar following the Federal Reserve's hawkish interest rate hike. The Bank of England is expected to leave interest rates unchanged at 3.75% today, but officials are setting the stage for a potential hike in November.

Inflation rose to 3.1%, but service sector inflation and underlying inflation remained steady. The labour market's weakening is helping offset some inflationary pressures from the Middle East conflict.

The Bank of England's decision will be closely watched, as oil and gas prices are rising sharply. A more hawkish vote could support the pound, but a failure to hike rates could see further pressure on the currency.