British Pound hits three-month low against US Dollar

The British Pound has reached a three-month low against the US Dollar, driven by a divergence in monetary policy between the Bank of England and the US Federal Reserve. While the Federal Reserve maintains a hawkish stance due to strong US economic data and expectations of further interest rate hikes to combat inflation, the Bank of England has adopted a more cautious approach amid concerns regarding stagflation.

Additional pressures on the Pound include UK fiscal concerns ahead of the Autumn Budget and weaker-than-expected data from the Confederation of British Industry (CBI). Market volatility remains high as traders weigh US economic indicators, such as jobless claims and durable goods orders, against geopolitical uncertainties and shifting global bond markets.