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The move means the GBP/USD cross has fallen to its lowest level since the 20th January this morning, after the dollar gained ground across the board.
GBP/USD graph
Why has the dollar strengthened?
There are two reasons behind the dollar's rise. Firstly, President Trump surprised markets yesterday evening when he gave his first major speech in front of Congress.
Trump stated that he was open to an immigration reform, which would seem him move away from his harsh stance on illegal immigration, something that has dominated the news since he got into office.
The dollar then received another boost this morning after two of the Federal Reserve's policymakers hinted another rate hike is on the horizon.
President of the San Francisco Fed, John William said that a rate rise was on the table for consideration at the central banks meeting in March because of accelerating inflation and full employment.
William Dudley, New York Fed President was also in a hawkish mood, saying the case for tightening monetary policy "has become a lot more compelling".
Will GBP/USD recover?
It is almost impossible to say at the moment. If the Fed do increase interest rates in a couple of week's time it is likely the dollar will gain even more ground against its counterparts.
We are also getting closer to the UK government triggering Article 50. With investors still uncertain about the impact leaving the EU will have on Britain's economy, plus Nicola Sturgeon planning a second Scottish independent vote, the pound looks set to remain under pressure in the coming weeks.
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