Pound Sterling ticks up against US Dollar in countdown to US NFP
The Pound Sterling trades marginally higher to near 1.3365 against the US Dollar (USD) during the Asian trading session on Friday. The GBP/USD pair edges up as the US Dollar ticks down ahead of the United States (US) Nonfarm Payrolls (NFP) data for February, which will be published at 13:30 GMT. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.1% down around 99.00.
The impact of the US official employment data is expected to be significant on the Federal Reserve’s (Fed) monetary policy outlook as traders trimmed dovish bets for the July policy meeting after the release of the upbeat ADP Employment data for February on Wednesday. The CME FedWatch tool shows that the odds of the Fed holding interest rates steady in the July policy meeting have increased to 47.4% from 33.4% seen a week before. Read more…
GBP/USD drifts lower heading into NFP range
GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture. The pair is now congesting in a tight range around its key daily moving averages, with small-bodied candles over the past three sessions pointing to indecision after the sharp sell-off from the late-January high near 1.3870.
Chancellor Rachel Reeves delivered the Spring Statement on Wednesday, with the Office for Budget Responsibility (OBR) cutting its 2026 UK growth forecast to 1.1% from 1.4% in November. The OBR noted that the Middle East conflict, which escalated as the document was being finalized, “could have very significant impacts on the global and UK economies.” The unemployment rate is now expected to peak at 5.3% later this year, well above the previous 4.9% forecast. The Bank of England (BoE) held rates at 3.75% in February by a narrow 5-4 vote, and surging Crude Oil prices on the Strait of Hormuz shutdown has dramatically shifted rate expectations: markets now price only a 20% chance of a cut at the BoE’s March 19 meeting, down from roughly 75% a week ago, with just a single 25 basis point reduction expected for the full year. Read more…
GBP/USD slumps as strong US jobs data lifts US Dollar
The Pound Sterling (GBP) resumes its downtrend for the week on Thursday, courtesy of heightened tensions in the Middle East and solid US employment data ahead of Friday’s Nonfarm Payrolls report. At the time of writing, GBP/USD trades at 1.3337, down 0.25%.
Risk appetite remains deteriorated as hostilities between the US, Israel and Iran entered their sixth day. Wall Street opened lower on Thursday, while the Greenback rallies for the third day of the week, according to the US Dollar Index (DXY). Read more…
