GBP/USD Slips Below 1.34 as Fed Hike Widens Interest Rate Gap

The British Pound (GBP) weakened against the US Dollar (USD) on Monday, losing 0.17% of its value as the Greenback gained momentum following last week's Federal Reserve rate hike.

The interest rate differential between the US and the UK has widened, putting pressure on major central banks to raise rates further due to still-high energy prices.

The GBP/USD pair struggled to capitalize on Friday's rebound from its lowest level since July 30 at 1.1335, instead attracting fresh sellers and declining below 1.3400.

The spot price currently trades around the 1.3375 region, down nearly 0.15% for the day, indicating a potential decline in the coming hours.