Ella 
In Asia on Friday, GBP/USD rose for the third consecutive day near 1.3180. The dollar’s continued decline supports the pair. Market participants will be paying close attention to U.S. non-farm payrolls data due tonight.
On Thursday, the U.S. ADP private sector employment rate in August was the slowest in more than 3.5 years, with an increase of 99,000. The previous value was revised down to 111,000, compared with expectations of 145,000.
The market expects the Federal Reserve to cut interest rates at its meeting on September 17-18. The U.S. Bureau of Labor Statistics will release its highly anticipated non-farm report tonight, which is expected to increase by 160,000. The report will determine market expectations for the Fed’s policy rate. Weaker-than-expected data could trigger a larger rate cut by the Federal Reserve and further weaken the dollar.
On the other hand, dovish expectations of a rate cut from the Bank of England boosted the pound. Bank of England Governor Bailey said last month that he believed long-term inflationary pressures had receded but was in no hurry to cut interest rates further because it was too early to declare victory in the fight against inflation. Investors believe that the chance of the Bank of England cutting interest rates at its September 12 meeting is close to 25%, but a rate cut in November is fully priced in.
