GBP/USD Hits Three-Month Low as Fed Hike Bets Soar

The Pound-US Dollar (GBP/USD) exchange rate fell to a three-month low on Thursday, trading at $1.3226 after bouncing off its lowest point of $1.3215.

This decline came as Federal Reserve interest rate hike bets boosted the US dollar, with markets pricing in more muscular action from the Fed to tame inflation.

The Pound struggled amidst these developments, weighed down by weaker-than-expected figures from the Confederation of British Industry (CBI) and concerns about the UK's tough fiscal position ahead of the Autumn Budget.

However, a contraction in US durable goods orders on Friday could potentially dent the dollar, offering some respite for the Pound.