The GBP/USD pair loses momentum to near 1.3225 during the early European trading hours on Wednesday. Surging US Treasury yields and the hawkish stance of the Federal Reserve (Fed) provide some support to the US Dollar (USD) against the British Pound (GBP). 

Chicago Fed President Austan Goolsbee said on Tuesday that inflation remaining above the Fed’s target represents a dangerous situation that may require policy action. Meanwhile, Fed Governor Michael Barr warned that further rate increases will likely be needed to slow inflation.  

Markets are now pricing in nearly a 47.1% odds of a Fed rate hike in October and a 92.5% chance of an increase in December, according to the CME’s FedWatch Tool.

The US ADP employment and Personal…