Pound Loses Ground Against Dollar Amid Fed Hike and Supply Shock Fears

The British Pound has lost its grip on the $1.34 mark as the US Federal Reserve's hawkish stance continues to drive up interest rates in the United States.

The GBP/USD pair has retreated by 0.17% on Monday, trading at $1.3371 after reaching a high of $1.3400 earlier in the day.

Chicago Fed President Austan Goolsbee's comments have added to the Pound's woes, as he warned that persistent supply shocks may require 'painful' tightening measures from the Fed.

Goolsbee stated that the central bank cannot ignore repeated and consistent supply shocks and must respond in a way that may cause economic hardship.