- The Pound Sterling climbs toward 1.2940 against the US Dollar ahead of February’s US NFP data.
- President Trump extends tariff exemptions for USMCA-compliant imports until April 2.
- BoE’s Catherine Mann opposes a gradual policy easing amid rising geopolitical uncertainty.
The Pound Sterling (GBP) trades higher on Friday as Bank of England (BoE) MPC member Catherine Mann rejects a “gradual and cautious” approach to monetary easing. Speaking at an RBNZ research conference on Thursday, Mann argued that global market volatility and cross-border spillovers render a moderate policy expansion invalid.
Her stance contrasts with other BoE officials, including Governor Andrew Bailey, who on Wednesday supported a measured approach to easing monetary restrictions due to persistent inflation concerns.
Meanwhile, US President Trump has extended tariff exemptions on certain imports from Canada and Mexico under the USMCA until April 2, the same day he plans to introduce reciprocal tariffs. On Wednesday, he also relaxed levies on automobiles after discussions with major US carmakers.
Pound Sterling Strengthens Against US Dollar Ahead of US NFP
- The Pound Sterling (GBP) climbs to a nearly four-month high near 1.2940 against the US Dollar (USD) in Friday’s European session, gaining momentum ahead of the US Nonfarm Payrolls (NFP) report at 13:30 GMT.
- Investors closely watch the US employment data, which is expected to show a gain of 160K jobs in February, up from 143K in January, with the Unemployment Rate holding at 4%. Wage growth, a key inflation indicator, is projected at 4.1% year-over-year, with monthly earnings rising 0.3%, slower than January’s 0.5% increase.
- Stronger labor and wage data could reinforce expectations that the Federal Reserve (Fed) will maintain interest rates at 4.25%-4.50% for longer, while weaker numbers might increase bets on rate cuts. According to the CME FedWatch tool, while the Fed is expected to hold rates in March, there is a 50% chance of a cut in May.
- On Thursday, Atlanta Fed President Raphael Bostic stated that rates should remain steady until at least late spring or summer, citing economic uncertainty tied to US President Donald Trump’s tariff policies, which could drive inflation higher.
Technical Analysis: GBP/USD Maintains Bullish Outlook
GBP/USD breaks above the 61.8% Fibonacci retracement level at 1.2930, confirming a bullish trend. The pair remains above the 200-day Exponential Moving Average (EMA) at 1.2688, while the 14-day Relative Strength Index (RSI) rises above 60.00, indicating strong bullish momentum.
Key support levels lie at the 50% Fibonacci retracement (1.2767) and the 38.2% retracement (1.2608), while resistance is seen at the psychological 1.3000 mark.
