At the beginning of this week, the GBP/USD pair was trading around $1.3158, up by about 0.2% from the previous Friday's levels. Clearly, this was driven by a weaker US dollar despite signs of stubborn producer prices in the United States. According to economic data, the latest US Producer Price Index data came in stronger than expected, rising 0.2% in August, up from a downwardly revised flat reading in the previous month. However, growing concerns that a weak US Labor market could push the Federal Reserve into an aggressive easing cycle in the near term have undermined the US dollar's upside potential. On the other hand, the latest initial US jobless claims report rose as expected to 230,000, revealing another increase in the number of unemployed US citizens claiming unemployment benefits. The figure held above averages seen at the start of the year, reinforcing concerns about a weak US labour market in the wake of a bleak US payrolls report in August. As a result, this offset any potential shifts in the current market consensus around multiple US interest rate cuts by the Federal Reserve this year, as the spectre of a US hiring slowdown weighed on the US dollar.