Ella 
In early Asian trading on Friday, GBP/USD held above the psychological 1.2800 mark. The US dollar maintained selling pressure, boosting GBP/USD. The focus on Friday will be U.S. labor market data for February. GBP/USD is currently trading around 1.2810, up 0.01% on the day.
Federal Reserve Chairman Jerome Powell will deliver a monetary policy report and answer questions before the Senate Banking Committee on Thursday. Powell said a rate cut may not be too far away if inflation signals are up to snuff. The Fed chairman did not provide an exact timetable for a rate cut but noted that day could come soon. Investors expect the first rate cut to come in June, followed by four more cuts totaling a full percentage point by the end of 2024.
On the other hand, financial markets expect the Bank of England (BoE) to cut interest rates after the Federal Reserve. This, in turn, would boost British Pound Sterling (GBP), boosting the GBP/USD currency pair. Investors expect the Bank of England to start easing monetary policy at its August meeting. However, Bank of England policymakers will wait for more evidence of inflation before making a decision.
Next, traders will keep a close eye on Friday’s release of U.S. nonfarm payrolls, unemployment rate and average hourly earnings for February. These events may trigger market volatility. Market participants will look to this data for GBP/USD currency pair trading opportunities.
