Pound Holds Steady as Treasury Yields Climb to 2002 Highs

The British Pound remains range-bound against the US Dollar as rising long-term Treasury yields continue to support the Dollar, despite a weaker-than-expected US jobs report that reduced expectations of a Federal Reserve rate hike in October. The GBP/USD pair has traded just above 1.3200, with Monday's range entirely within Friday's. The 10-year Treasury yield hit 5.35%, its highest level since April 2002, reflecting strong bond market dynamics.

The Pound has shown strength against the Euro, benefiting from a bond selloff in France that has made British assets appear as a safer European investment. This relative strength has helped GBP/USD maintain its range over the past eight sessions. However, the UK's economic calendar is light, with no major data releases expected until Friday, leaving speeches by Bank of England officials as the primary events to watch.

Key resistance levels for GBP/USD are at 1.3250 and 1.3300, while support is found at 1.3200, 1.3150, and 1.3100. Analysts suggest that a break below the current range could occur if the Fed's minutes from the September 16 meeting indicate a bias toward further rate hikes. Additionally, Chancellor Jeremy Healey's first budget on October 28, coinciding with the Fed's decision, could influence market sentiment.