GBP/USD Plunges as US Dollar Rises Ahead of Job Data

The British Pound (GBP) is under pressure against the US Dollar (USD), trading at around 1.3234 during the early European session on Tuesday.

This comes as the US Dollar trades firmly ahead of the US JOLTS Job Openings data for August, which will be published at 14:00 GMT.

The markets have priced in almost 100 basis points (bps) monetary tightening by the Bank of England (BoE) in one year, but analysts at HSBC caution that higher energy prices create a difficult policy mix, leaving the Pound vulnerable as policy trade-offs intensify.