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Pound falls near three-week low versus US dollar ahead of Fed

GBP/USD slid to around 1.3277 as the US Dollar Index hit a fresh monthly high and FedWatch showed a 62% chance of unchanged US rates.

Reported · Written up by our desk · Major Pairs

The British pound extended its decline against the US dollar into European trading on Tuesday, edging toward 1.3277, the weakest level in more than three weeks, according to FXStreet.

FXStreet said selling pressure on GBP/USD is tied to a firmer US dollar as investors grow cautious ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

FXStreet cited the US Dollar Index, DXY, rising to a fresh monthly high of 101.64, while CME FedWatch indicated traders see a 62% chance the Fed will keep interest rates unchanged in the 3.50% to 3.75% range.

Looking ahead, markets are also set to parse messaging from Fed Chair Kevin Warsh and a Bank of England decision on Thursday, where FXStreet said expectations call for BoE rates to remain at 3.75%.

Latest closeGBP/USD 1.329 ▼0.2%|Dollar index 101.51 ▲0.0%

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