The British Pound futures contract moved lower, hitting a new weekly low at 1.3038 before reversing to close higher near 1.3075. The move was influenced by the U.S. dollar's reaction to the September nonfarm payrolls number, which was stronger than expected but was accompanied by higher unemployment. The dollar initially rallied but then backed off its highs, giving the pound fuel to recover. Volatility in the pound was lower as the price reversed and rallied off the weekly lows. Looking ahead, traders should monitor real earnings, S&P PMIs, and the University of Michigan sentiment data, including its inflation components, as well as comments from hawkish Federal Reserve speakers.
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