Ella 
In the Asian market on Monday, GBP/USD hovered around 1.2850, maintaining bullish sentiment and likely to continue the rising trend since March 1. However, the U.S. dollar (USD) gained strength following strong U.S. non-farm payrolls data and rebounded after Friday’s losses.
U.S. nonfarm payroll employment increased by 275,000 in February, exceeding January’s 229,000 and beating expectations for a gain of 200,000. However, U.S. average hourly earnings (annual rate) increased 4.3%, slightly below expectations and the previous reading of 4.4%. The monthly growth rate was 0.1%, lower than the expected value of 0.3% and the previous value of 0.5%.
The GBP/USD currency pair continues to maintain a bullish tone as the Federal Reserve (FED) is widely expected to cut interest rates ahead of the Bank of England (BOE), potentially narrowing the policy divergence between the two central banks for some time. Federal Reserve Chairman Jerome Powell reiterated the central bank’s stance during testimony before the U.S. Congress last week. Powell hinted at the possibility of cutting borrowing costs at some point this year and stressed that such a measure would depend on whether the trajectory of inflation matches the Fed’s 2% target.
Last week, Chancellor of the Exchequer Jeremy Hunt presented the spring budget to Parliament. This has allowed the market to maintain positive sentiment towards the UK budget, especially as the Office for Budget Responsibility (OBR) predicts stronger economic growth.
Market participants are eagerly awaiting UK employment data, including the International Labor Organization’s unemployment rate (3M) and employment change data due to be released on Tuesday. Additionally, February consumer price index data is also a focus for investors and analysts.
