British Pound futures continued a downward trend, reaching a one-month low of 1.3430 and closing near 1.3450. Since late January, the pound has declined nearly 3% as it faces pressure from a stronger U.S. dollar and shifting expectations for Bank of England monetary policy. A weakening job market has led to the repricing of potential rate cuts, further impacting the currency. Market volatility increased as prices tested recent lows, reflected in the CVOL index. Looking ahead, traders focused on sensitive U.S. data points including the December PCE index, fourth quarter GDP, and global PMIs. The week will conclude with the University of Michigan sentiment report and its key inflation components, which remain central to upcoming Federal Reserve analysis.
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