British Pound futures slid below 1.32 following hawkish FOMC policy.

British Pound futures fell below the 1.32 level for the first time since mid-April, accelerating a two-day sell-off of nearly 2%. The move follows a hawkish FOMC meeting that prompted market participants to price in potential rate hikes by the end of the year, strengthening the U.S. dollar. In contrast, the Bank of England kept interest rates unchanged and signaled a patient approach, providing no hawkish counterweight to the Federal Reserve's stance. According to CME Group CVOL data, this divergence caused volatility to spike in the pound, even as volatility declined in equity indices and fixed income markets. Commitment of Traders data highlighted that speculators grew their net short positioning prior to the central bank announcements.