Sterling trades near two-month trough

Sterling fell today as the dollar surged against main currencies, while demand kept rising on the greenback since the start of the year.
 
GBP/USD last traded at 1.2253, down from the opening of 1.2291, with an intraday high at 1.2305, and a low at 1.2205.
 
Sterling's current drop comes despite earlier strong U.K. data that showed the manufacturing PMI up to 56.1 in December from 53.6, besting expectations of 53.6.
 
On the other hand, the dollar rose to a 14-year peak against major currencies, deepening the losses of the pound as demand rises on the dollar and wanes on other currencies.
 
The Federal Reserve hinted at three more rate hikes next year after increasing them in its last December meeting, which is more than the two expected in the September meeting, buoying the dollar further against the pound.