Pound Dives Below 1.33 as Fed Hawkishness Trumps Oil Price Relief

The British pound has dropped below 1.33 against the US dollar as investors focus on the Federal Reserve's hawkish rhetoric and rising US interest rates.

Despite a recent drop in global oil prices, which could provide some relief to the UK economy, the Bank of England still views the energy crisis as crucial for its monetary policy decisions.

The latest business activity PMI figures were somewhat disappointing, with growth in the services sector slowing more than expected. The manufacturing index did tick upwards slightly, but the overall trend suggests that a slowdown is almost inevitable for the remainder of the year.