Fresh concerns surrounding a potential US government shutdown coupled with Fed rate cut expectation weighed on the US Dollar (USD) on Monday in a week where the US labour market is seen taking centre stage.
Pound Sterling (GBP) is likely to trade in a range between 1.3375 and 1.3430. In the longer run, downward momentum is starting to slow, but only a breach of 1.3445 would indicate that the weakness in GBP has stabilised, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
In an interview with CNBC on Monday, Federal Reserve Bank of Cleveland President Beth Hammack said that they need to maintain a restrictive stance of policy, citing pressure in inflation, especially services.