The Pound Sterling bounces back strongly above 1.3400 against the US Dollar after soft US PCE inflation data. Investors will focus on a slew of US labor market data released next week. The BoE is expected to cut interest rates once in the last quarter of the year. The Pound Sterling (GBP) recovers sharply above the round-level resistance of 1.3400 against the US Dollar (USD) in Friday’s North American session. The GBP/USD pair gains strength after the release of the United States (US) Personal Consumption Expenditure Price Index (PCE) data for August, which showed that price pressures grew at a slower-than expected pace. US annual headline PCE inflation rose by 2.2%, slower than the consensus of 2.3% and the prior release of 2.5%. In the same period, the US core PCE index, the Federal Reserve’s (Fed) preferred inflation gauge, grew expectedly by 2.7% but faster than the prior release of 2.6%. The month-on-month headline and core PCE inflation rose by 0.1%. A slowdown in the inflation data is unlikely to cement market expectations for the Fed to cut interest rates by 50 basis points (bps) again in November as officials were already confident that price pressures will return to the bank’s target of 2%. Meanwhile, policymakers have become more vigilant about labor market risks. Last week, the Fed started the policy-easing cycle with a larger-than-usual interest rate cut of 50 basis points (bps) to 4.75%-5.00%, which signaled that officials would do whatever it takes to revive labor market strength.