The US Dollar continues to demonstrate robust performance, trading near three-month highs and on track for a 4% rally in October—its strongest monthly gain in two years. This strength underscores the market's confidence in the US economy relative to other major economies.

The EUR/USD pair is currently range-bound near the 1.08 handle. Despite the Euro finding some footing, the pair remains constrained ahead of a data-intensive week, packed with high-volatility events such as JOLTS and NFP data releases.

From a technical perspective, the EURUSD pair is attempting to rebound from the lower boundary of the ascending trend channel, which it tested last Wednesday. So far, this rebound has been weak, as the pair has been unable to surpass 1.0850 within this corrective move. Based on this, it can be assumed that the decline may not be over, and sellers might wait for a return to the 1.0850 level to enter short positions on the pair. A break below the channel's lower boundary would target horizontal support at 1.07 and possibly even 1.06:

In the Eurozone, attention is particularly focused on economic growth figures. Market consensus about GDP growth is 0.8% year-over-year in the third quarter, an improvement from the 0.6% growth observed in the second quarter. Quarter-over-quarter growth is projected to remain steady at 0.2%.

The USD's trajectory this week will be significantly influenced by upcoming US economic data, including the JOLTS Job Openings, Nonfarm Payrolls, and third-quarter Gross Domestic Product figures.

A strong labor market could reinforce the perception that the US economy is outperforming other major economies. This perception will likely lead to adjustments in monetary policy expectations, potentially affecting the Federal Reserve's approach to its easing cycle. While the market currently anticipates that the Fed will maintain its current interest rates in the upcoming meeting, any surprises in the data could prompt a reassessment.

According to interest rate derivatives, market participants are overwhelmingly expecting the Federal Reserve to hold interest rates steady in its next meeting. This marks a shift from two weeks ago when the market was more divided on the possibility of a rate hike.

The British Pound has gained traction against the USD, approaching the psychological resistance level of 1.30. The GBP/USD pair's upward movement is partly due to a temporary pullback in the USD, as investors turn their focus to the forthcoming US economic data.

However, the Pound's strength may be tempered by growing speculation that the Bank of England could consider cutting interest rates in the coming months. Recent dovish remarks from BoE Governor Andrew Bailey have fueled these expectations. Market participants are interpreting these comments as a signal that the BoE may adopt a more accommodative policy stance if economic conditions warrant it. While immediate rate cuts in the next two meetings seem unlikely, the possibility of a shift in policy could impact the Pound's appeal to investors.

On the technical side, GBP/USD pair recently found support near a medium-term trendline, but the subsequent rebound appears weak, signaling a consolidation phase rather than a robust recovery. This pattern hints at potential downside risk, with the next support level likely around the 200-day simple moving average near 1.2800. Ongoing uncertainty around election outcomes and the anticipated US labor market data are expected to suppress any significant upside moves, making 1.3000 a key resistance level where further selling pressure could emerge. This level might attract more short positions as traders brace for further downside amid external pressures: