GBP/USD softens to near 1.3050 on firmer US Dollar, dovish BoE

• GBP/USD weakens to near 1.3060 in Monday's early European session. 
• The US PPI inflation slowed further in September. 
• The dovish stance of the BoE continues to weigh on the GBP. 

The GBP/USD pair trades with mild losses around 1.3060 during the early European session on Monday. The safe-haven flows amid rising geopolitical risks underpin the Greenback and drag the major pair lower. Investors will closely monitor the UK employment data, which is due on Tuesday. 

Data released by the US Bureau of Labor Statistics on Friday showed that the annual Producer Price Index (PPI) rose 1.8% YoY in September, compared to a 1.9% increase seen in August, and came in above the market expectation of 1.6%. Meanwhile, the core PPI climbed 2.8% YoY in the same period, surpassing analysts' forecast of 2.7%. On a monthly basis, the US PPI was unchanged in September, while the core PPI was up 0.2% in the same reported period.

Fed officials have now shifted from trying to combat inflation to trying to keep the job market healthy, the other half of their so-called dual mandate. However, a stronger-than-expected jobs report in September and lower bets of another 50 basis points (bps) interest-rate cuts by the Federal Reserve (Fed) in November could lift the USD against the Pound Sterling (GBP). 

On the GBP's front, the dovish remarks from the Bank of England (BoE) Governor Andrew Bailey, saying that the UK central bank might become a bit more aggressive in cutting rates, weigh on the Cable. The markets have priced in a 90% chance that the BoE will cut rates in November. The BoE's Monetary Policy Committee (MPC) will meet on November 7 to announce their decision on the interest rate. Ahead of the key UK event, the UK employment data on Tuesday will be closely watched and might offer some hints about the labour market condition, and UK interest rate outlook.