The GBP/USD pair is staying around the 1.3435 level during the Asian session, close to its weekly low. Traders are being cautious while they wait for the U.S. Nonfarm Payrolls (NFP) report, which will affect their short-term strategies. The NFP data could impact potential changes in the Federal Reserve’s interest rates, which are important for short-term movements in the U.S. Dollar. Expectations of future interest rate cuts by the Fed, along with stable stock market performance, are preventing the dollar from rising further, giving support to the GBP/USD pair.

The Bank Of England’s Stance

The Bank of England believes that interest rates are close to neutral, which supports the British Pound and limits the downside for the GBP/USD pair. Spot prices are likely to end the week without much change, but the overall economic situation may encourage buying at lower levels. For the GBP/USD to go down further, it needs to drop below the 1.3400 mark. The Nonfarm Payrolls report highlights changes in U.S. job creation and is released by the U.S. Bureau of Labor Statistics. The numbers can cause significant movement in the forex markets; strong reports usually strengthen the dollar, while weak ones weaken it. We often see noticeable market shifts when the actual data is released. As we wait for today’s U.S. jobs report, GBP/USD is consolidating near its weekly low around 1.3435. The next price movement depends on whether the Nonfarm Payrolls number is above or below the expected 60K. A significant miss could likely weaken the dollar and result in a rise for the pair. This jobs report is crucial because recent data points from late 2025 suggest a slowing U.S. economy. For example, the core Personal Consumption Expenditures (PCE) Price Index, which the Fed uses to measure inflation, fell below 3% in the fourth quarter of 2025 for the first time in over two years. This trend supports the expectation that the Federal Reserve may start cutting rates soon, which puts pressure on the dollar.

Different Challenges For The Bank Of England

On the other hand, the Bank of England is facing a different issue, as UK inflation stayed stubbornly above 4% for much of 2025. This difference may help support the pound, as the Fed looks to ease policy while the BoE might need to maintain its stance. Therefore, it’s wise to be careful about making aggressive bearish bets on the GBP/USD pair. For derivative traders, the expected volatility around the jobs data makes buying short-dated straddles or strangles an interesting strategy. This method allows traders to profit from big price swings in either direction without needing to predict the report’s outcome. It directly benefits from the current uncertainty in the market. Looking ahead to the upcoming weeks, any dips toward the 1.3400 support level could be considered good buying opportunities. Traders might think about buying call options set for March or April. This strategy follows historical patterns, like those in 2019, when the dollar often weakened once the Fed started a rate-cutting cycle. Create your live VT Markets account and start trading now.

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