Anna 
The Pound Sterling (GBP) has encountered significant selling pressure, dropping to the key support level of 1.2800 in the European session on Tuesday. This downward movement follows the release of soft Employment data by the United Kingdom Office for National Statistics (ONS), reflecting the impact of higher interest rates from the Bank of England (BoE) and a deepening cost-of-living crisis on labor market conditions.
According to the ONS, the UK’s Unemployment Rate has increased to 3.9%, with employers shedding 21,000 workers, and Average Earnings showing a slower pace of growth in the three months ending January. These figures underscore the uncertainty prevailing in the economic outlook, raising concerns that BoE policymakers might consider initiating interest rate reductions earlier than initially anticipated.
Market participants are advised to prepare for heightened volatility during today’s session as the United States Bureau of Labor Statistics (BLS) is set to report the Consumer Price Index (CPI) data for February. This inflation data will offer fresh insights into the outlook for US interest rates, potentially influencing global market sentiment.
