Ella 
GBP/USD broke three consecutive losses and rose to around 1.2490 in Asia on Friday. The pair is currently finding support as the dollar corrects after ending a three-game winning streak. This adjustment can be attributed to the fall in U.S. Treasury yields, with the 10-year yield falling to 4.22%, down 1.36% since the previous day.
U.S. data released on Thursday showed that in the week ending September 1, the number of initial jobless claims in the United States was 216,000, compared with the previous value of 229,000. The data was better than expectations of 234,000. In addition, U.S. unit labor costs rose to 2.2% in the second quarter, compared with the previous value of 1.6%, and are expected to remain durable.
However, the U.S. dollar (USD) continues to draw support from a series of positive economic data on the state of the U.S. economy. The U.S. dollar index (DXY), which measures the greenback’s performance against six other major currencies, is trading around 104.90, though off Thursday’s highest level since April.
The Fed is expected to keep interest rates rising for a longer period of time. In addition, the market expects the Federal Reserve to raise interest rates by 25 basis points at its November and December meetings. This hawkish stance provides continued support for the dollar.
On the other hand, the market believes that the Bank of England is nearing the end of its rate hike cycle, putting downward pressure on the pound and limiting gains in GBP/USD.
