Pound to Dollar Forecast: GBP Drops to 1.33 After Hawkish Fed Hold

GBP/USD came under pressure after the Federal Reserve kept rates unchanged but struck a hawkish tone, signaling borrowing costs may stay higher for longer. The dollar strengthened broadly as Treasury yields rose and investors repriced the Fed outlook, while the pound failed to find support from UK data. UK headline inflation held at 2.8% in May versus expectations for 3.0%, and core inflation rose only to 2.6%, below forecasts. GBP/USD fell to around 1.3300, nearly 1% lower on the day, with markets now focused on the Bank of England decision, UK political developments, and ongoing Middle East risks that could further support the dollar.