Pound Faces Uphill Battle Against Hawkish Fed as GBP/USD Hits Three-Month Low

GBP/USD is trading at a three-month low after falling just 0.5% in Q3, but the pound's chances of turning the tide against a hawkish Fed are slim.

The sharp decline in September came as the US dollar staged a powerful recovery, with the pound also weakening against major peers like the euro and New Zealand dollar.

Widening policy divergence between the Federal Reserve and the Bank of England is expected to continue supporting the USD, making it difficult for the pound to recover.