Analysis: The British pound fell against the US dollar, influenced by the diverging policies of the Bank of England and the Federal Reserve.

Joel Kruger of LMAX Group stated in a report that the British pound fell to a seven-month low against the US dollar due to widening policy divergence between the Bank of England and the Federal Reserve. He said that market expectations for the Fed to hike interest rates later this year significantly increased following the central bank's meeting last week. "This shift in rate expectations, coupled with robust US data and persistent demand for the dollar, continues to be the main obstacle for the pound," he added. Despite this, the pound has outperformed some other currencies in recent trading sessions. This indicates that political risk was already priced in before UK Prime Minister Theresa May announced her resignation on Monday. The pound fell to a low of 1.3139 US dollars.