GBP/USD Falls as Fed Hawkishness Overshadows BoE Rate Hold
The British Pound dropped on Thursday as the US Dollar strengthened following the Federal Reserve's hawkish stance, overriding the impact of the Bank of England's decision to keep rates unchanged in a 7-2 vote. GBP/USD fell to 1.3234.
The Pound Sterling slid against the US Dollar during the North American session on Thursday, extending losses as traders continued to price in the Federal Reserve's hawkish shift. The move came despite the Bank of England holding its benchmark rate steady in a 7-2 vote, which initially offered some support.
GBP/USD traded at 1.3234, down from earlier levels, as the dollar strengthened broadly. The Fed's more aggressive tone on inflation and rates overwhelmed the relatively neutral BoE outcome, pushing the pair lower.
Source: FXStreet Forex News