GBP/USD loses momentum below 1.3400, BoE Pill's speech and FOMC Minutes in focus

• GBP/USD loses traction around 1.3390 in Wednesday's early European session.
• The prospect of further BoE rate cuts this year weighs on the Pound Sterling. 
• Traders await signs of the end of the US federal government shutdown. 

The GBP/USD pair loses ground near 1.3390 during the early European session on Wednesday. The Pound Sterling (GBP) edges lower against the Greenback amid rising expectations that the Bank of England (BoE) will cut interest rates one more time in the remainder of the year. 

The dovish expectation of the BoE grows due to growing United Kingdom (UK) labor market concerns, which undermine the Cable against the USD. Reuters reported that the businesses in the UK in the three months to September expected to keep employment steady over the next 12 months, the first time since January that they have been observed reluctant to increase staffing. 

Concerns about persistent inflation, sluggish economic growth and a loosening labor market are likely to influence the BoE's decisions. Until now, the UK central bank has retained a "gradual and careful" monetary easing approach.

Traders focus on any signs of when the US federal government will reopen. A prolonged US federal government shutdown could drag the USD lower and act as a tailwind for the major pair. The US government shutdown entered its second week as US senators failed to pass spending proposals to reopen the federal government.

Looking ahead, traders will take more cues from the BoE's Huw Pill speech later on Wednesday for some hints about the UK interest rate path. Pill was one of seven Monetary Policy Committee (MPC) members who voted to keep interest rates on hold at 4.0% in the September policy meeting. On the US docket, the FOMC Minutes will be the highlights. Also, the Fed's Alberto Musalem,  Michael Barr, Austan Goolsbee, Lorie Logan and Neel Kashkari are scheduled to speak.