Pound Takes Hit as Fed Rate Hike Widens Interest-Rate Gap

The British pound has fallen by about 0.17% on Monday against the US dollar as the Federal Reserve's recent rate hike widened the interest-rate gap between the two countries.

The GBP/USD pair was trading at around 1.3371, below its 100-day simple moving average, and despite a brief rebound on Friday from its lowest level since July 30, selling pressure resumed at the start of the week.

Market analysts are warning that this bearish momentum is likely to continue, with some predicting a further slide of 2% to 3% within the next thirty days. The rise in short positions among non-commercial traders also suggests that institutional sentiment has turned sour.