Pound Slips as Hawkish Fed Outlook Boosts Dollar

The British Pound slipped against the US Dollar on Monday as hawkish sentiment surrounding the Federal Reserve's policy outlook boosted the greenback.

The GBP/USD pair hovered around 1.3390 during Asian hours, registering modest gains from the previous trading day but losing ground amid the Fed's hawkish stance.

Last week, the US Federal Reserve delivered a 25-basis-point rate hike, its first in three years, as officials sought to curb inflation and flagged more hikes in the coming months. Fed Chair Kevin Warsh stated that 'the plain fact is that inflation is too high and has been for too long.'

Markets are now pricing in nearly a 56.5% chance of another US rate hike when the Fed meets next in October, compared with nearly 42.5% a week ago.