20/03/2026
The GBP experienced a slight decline by the day’s end after morning job figures hinted at a mild cooling in the UK’s employment sector. Meanwhile, the USD strengthened in the afternoon following higher-than-anticipated CPI data, indicating lingering inflationary pressures in the US.
A sense of caution surrounded GBP trading yesterday in anticipation of this morning’s job wage data, leading to profit-taking on last week’s gains. Meanwhile, USD strengthened in line with rising treasury yields.
The US dollar weakened broadly following Friday’s jobs report, which revealed a cooling labour market. While nonfarm payroll numbers showed an increase of 275,000 jobs in February.
Yesterday, the USD experienced another downward movement after comments from Fed Powell hinted at a potential rate cut. This led to declines in 2-year and 5-year treasury yields.
The UK budget failed to boost the GBP’s performance against the G10 currencies. However, GBPUSD showed resilience, trading back towards 2024 highs despite disappointing US job numbers.
The ISM services data released in the afternoon indicated a continued growth in the sector, albeit below expectations, with concerns emerging over job cuts.