GBP/USD showed immense strength last week, gaining around 250 pips but it failed to reach 1.30, as the price reversed just below 1.29 on Friday, helped by a mixed NFP report from the US. Yesterday the GBP was the weakest among major currencies, with the price dipping below 1.28.

GBP/USD Daily Chart – The Decline Gains Pace

Yesterday’s hawkish comments from the Bank of England (BOE) official, Mann, didn’t have an impact on the markets, especially considering the British Pound’s poor performance. Mann’s remarks suggested a strong view regarding the BOE’s prediction for service inflation, indicating that it may take longer for inflation to reach the 2% target.

While comments from a known hawk such as him could typically influence market sentiment, it appears that traders and investors are not swayed by such remarks at this moment. The reason for this is the UK employment report which was to be released today, and the GDP report scheduled for tomorrow.

UK February Employment Report

• January ILO unemployment rate 3.9% vs 3.8% expected
• February ILO unemployment rate was 3.8%
• January employment change -21k vs 10k expected
• Prior employment change was 72k
• January average weekly earnings +5.6% vs +5.7% 3m/y expected
• Prior average weekly earnings were +5.8%
• January average weekly earnings (ex bonus) +6.1% vs +6.2% 3m/y expected
• Prior average weekly earnings (ex bonus) +6.2%
• February payrolls change 20k
• Prior 48k; revised to 15k

It appears that payrolls in the UK remained positive, which is good news indicating ongoing job growth. While there has been a modest increase in the unemployment rate following a drop in the previous month, it’s important to note that the Office for National Statistics may still be adjusting its methodology, which could affect the reported figures.

Regarding wage figures, there seems to be some moderate deceleration, although not to the extent that would prompt the Bank of England (BOE) to consider lowering interest rates at this time. Wage growth is a critical factor that the BOE considers when making monetary policy decisions, as it reflects the strength of the labor market and its potential impact on inflationary pressures.

GBP/USD Live Chart