Sterling Slips as Fed Hike Widens Rate Gap

Monday saw sterling decline by 0.17%, as GBP/USD fell to 1.3371, just shy of 1.3400, due to the US Dollar's advantage following the Federal Reserve's rate hike.

The Fed increased interest rates for the first time in three years to a range of 3.75%, 4%, widening the gap with the UK's 3.75% Bank Rate.

Chicago Fed President Austan Goolsbee stated that recurring supply shocks could force a response leading to economic hardship, and reiterated the goal of keeping inflation at 2% may not be painless.