GBP is experiencing a decline against a strengthening USD, driven by the release of U.S. job and wage data surpassing expectations. The robust U.S. economic performance, with the creation of an impressive 353K jobs in January, far exceeding the anticipated 180K, has eliminated the likelihood of a Federal Reserve rate cut in March.

The positive momentum for the USD is further fuelled by the upward revision of the previous month's job creation to 333K. Additionally, average hourly earnings, reflecting a 4.5% year-on-year increase in January, outpaced the consensus for a decrease to 4.1%, following an upward revision from 4.4%. This combination of strong employment numbers and higher wages has contributed to the current depreciation of GBP/USD.

These figures ridicule the expectations of a market that had priced in a Federal Reserve rate cut as soon as March, shifting the likelihood of the initial cut to at least mid-year. In light of such robust economic indicators, one might question the necessity for the Fed to implement any rate cut at all.

The current exchange rates show GBP/USD down by two-thirds of a percent at 1.2664, while the EUR/USD exchange rate has decreased by 0.68% to 1.0798.