Important events today:

12:30 UTC – GBP: UK Budget Report

13:15 UTC – USD: ADP Employment Change

15:00 UTC – USD: Chairman of the Federal Reserve Board of Governors Jerome Powell will deliver a speech

The Pound Dollar is bouncing back from the day’s losses and looks to continue its winning streak, hovering around 1.2700 during the Asian trading session ahead of UK Chancellor Jeremy Hunt’s budget speech on Wednesday. Hunt is due to unveil the government’s fiscal program, outlining tax and spending plans ahead of the general election. It is thought he may cut national insurance contributions for workers, after announcing a 2p cut in the Autumn Statement.

The ISM Purchasing Managers’ Index (PMI) for the U.S. services sector fell to 52.6 in February, lower than the expected decline to 53.0 from 53.4. In addition, factory orders (m/m) fell 3.6% in January, more than the expected 2.9% drop. Former New York Fed economist Stephen Friedman suggested that Fed policymakers are likely to be cautious about cutting interest rates in 2024 due to rising and volatile inflation. He hinted at the possibility of fewer rate cuts than the three originally expected for 2024.

Recommendations: Trade Buy orders from current price levels