The pound also suffered after concerns over the Conservatives Party's campaign for Junes election began to mount.
Weekend polls showed that Labour are beginning to gain ground against the Conservatives, halving Theresa Mays lead. With the polls narrowing Theresa May has been forced to backtrack on one of her main pledges (increasing the amount the elderly pay for social care) as it was seen as alienating a key section of Conservative voters.
However, this afternoon saw the pound recover the lost ground, with the GBP/USD cross rising over half a per cent, to hit a session high of $1.3030.
What can we expect over the next couple of week's.
With the political uncertainty in the States, the upcoming UK elections and Brexit negotiations we could be set for a volatile few weeks for the pound and dollar.
The GBP/USD cross seems to have settled around the $1.30 mark, but if the dollar continues to suffer at the hands of Donald Trump and the Federal Reserve decided against another rate hike next month, then the currency pair could rise another couple of per cent, pushing rates up towards $1.33.
On the other hand, if Labour continue to fight back in the polls and the Brexit negotiations don't go smoothly, we could easily see GBP/USD slip back towards $1.25.
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