The GBP/USD pair continues its downward trajectory.
The British pound, in comparison to the US dollar, remains on a steady decline. The current exchange rate for GBP/USD is at 1.2080.
The swift ascent of US treasury bond yields is reinforcing the USD, impacting riskier assets, and bolstering the USD against major currencies.
As per FedWatch, investors are anticipating a Fed interest rate increase in November with a 35% chance and in December with a 55% likelihood. The potential widening of the interest rate gap between the Federal Reserve and the Bank of England is exerting downward pressure on the GBP.
Attention is focused on the imminent release of the Non-Farm Payroll (NFP) report for September, set for Friday. If the data surpasses expectations, the probability of a November interest rate hike will rise. Consequently, this would provide further support to the dollar while intensifying the pressure on the pound.