GBP/USD Slips Below $1.3370 as UK Borrowing Surges to £18.26 Billion

The British Pound has lost its recent gains against the US Dollar after UK public sector borrowing surged to £18.26 billion in August, exceeding forecasts.

The Office for National Statistics reported that net borrowing was about a fifth higher than in August last year and outpaced government income from taxes and other receipts.

Markets are weighing expectations for Bank of England tightening against a firmer US Dollar following the Federal Reserve's hawkish shift, with attention turning to US Purchasing Managers data later in the week.