The pound could plummet again against the dollar if today’s US labour market release comes out stronger than expected, an economist has warned. Sterling has recovered slightly from the all-time low figure of $1.03, which was recorded after Chancellor Kwasi Kwarteng announced tax cuts for the rich in his mini-budget and currently stands at $1.12.

However, this could change again following the release of the US labour market report. The consensus expects the US economy to have added 265,000 jobs in September, and anything higher than this figure would boost the dollar.

Kim Cundy, economist at CBA said: “GBP risks falling further today if FOMC rate hike expectations firm following the September non‑farm payrolls print.

“With sterling having recovered from the volatility driven by Kwarteng’s mini-budget, the focus returns to the question of when the dollar dominance will resume.”