Ella 
In early trading in Asia on Thursday, GBP/USD broke through the 1.2700 mark and is currently trading around 1.2735. A weak US dollar and a positive UK spring budget boosted GBP/USD.
Federal Reserve Chairman Jerome Powell told House lawmakers on Wednesday that interest rates may begin to fall this year, but also warned that the central bank will take its time until it has greater confidence that inflation is moving sustainably towards its 2% target. Powell’s speech showed that Fed officials remain cautious about not losing progress in fighting inflation and that decisions will be based on data released in the future.
In terms of data, U.S. JOLTs job vacancies dropped to 8.863 million from the previous value of 9.026 million, which was lower than the expected value of 8.9 million. The change in U.S. ADP employment in February climbed to 140,000 from 111,000 in January, which was lower than the expected value of 150,000.
Chancellor of the Exchequer Jeremy Hunt has presented the spring budget to the House of Commons. Hunt said the British economy had dealt with the financial crisis, the coronavirus pandemic and the energy crisis caused by war in Europe, while adding that interest rates would remain high as the Bank of England tried to reduce inflation.
In addition, Hunt also said that the British economy is expected to grow by 0.8% and 1.9% in 2024 and 2025 respectively, which is stronger than the 0.7% and 1.4% growth rates predicted by the Office for Budget Responsibility in November. That said, these positive remarks and the suggestion that the UK will maintain high interest rates for a long time still boosted the pound (GBP) and boosted GBP/USD.
U.S. initial jobless claims and the trade balance will be released on Thursday. Investors will also get more signals from Fed Chairman Jerome Powell’s second testimony later in the day and Fed official Mester’s speech. On Friday, focus will turn to U.S. nonfarm payrolls data, which is expected to increase by 200,000 in February from 353,000 previously.
