Pound Under Pressure Ahead of Key Rate Decisions

The British Pound has been on a downward trend against the US Dollar over the past two weeks, losing nearly 1.20% of its value. The currency remains below the crucial threshold of 1.3300 and is expected to continue its decline as investors await key monetary policy decisions from both the Federal Reserve (Fed) and the Bank of England (BoE).

The Fed's decision on interest rates, due later today, is not expected to be a surprise, with markets giving it a one-in-three chance of a quarter-point hike. However, even if the Fed stands pat on rates, its more hawkish stance compared to the BoE will likely underpin the pair's bearish bias.

The focus will shift to Thursday's Bank of England meeting, where analysts expect interest rates to remain unchanged. The number of hawkish dissenters among the committee will be closely watched, as a significant increase in such voices could boost the Pound's value.