GBP/USD Slumps Ahead of BoE Rate Decision Amid Hawkish Fed Stance

The GBP/USD currency pair has been struggling to stay above a six-week low ahead of the Bank of England's interest rate decision. The central bank is expected to maintain its current interest rate of 3.75% but may set the stage for a hike in November, which could be the first of several.

Inflation has risen to 3.1%, but service sector inflation and underlying inflation remained unchanged in August. The labour market is weakening, which is helping to offset some of the inflationary pressures stemming from the Middle East conflict.

The hawkish stance of the Federal Reserve after its meeting yesterday has led to a stronger dollar, putting further pressure on the GBP/USD pair. However, a more hawkish vote by the Bank of England could help support the pound.