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GBP / USD is 0.33 percent higher after the pair climbed from a low of 1.2063 to a high of 1.2103, its largest gain since January 6, as the US Dollar weakens broadly following Friday's US employment report.

Despite the rise in the Unemployment Rate and evidence of wage inflation slowing, markets have reduced their wagers that the Federal Reserve will raise interest rates as aggressively. The United States added 311,000 jobs in February and the unemployment rate rose to 3.6%. However, economists surveyed by Reuters anticipated that the United States would have added 205,000 positions last month and that the unemployment rate would remain unchanged at 3.4%. After gaining 0.3% in January, average hourly earnings increased 0.2% in February, below expectations of 0.3%.

In addition, the United Kingdom's economy grew more than anticipated in January, further calming concerns of a recession. The Office for National Statistics (ONS) reported that the British economy grew 0.3% month-over-month in January, following a 0.5% decline in December. A poll of economists conducted by Reuters indicated growth of 0.1%.

SVB Financial Group's collapse is the largest bank failure since the financial crisis. On Sunday, however, the Biden administration guaranteed that all Silicon Valley Bank customers will have access to their funds beginning on Monday. Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and Federal Deposit Insurance Corporation Chairman Martin J. Gruenberg stated in a joint statement on Sunday that the FDIC will compensate SVB and Signature's customers in full.

The upcoming schedule is jam-packed with US consumer Price Index and UK labor market data. Analysts at TD Securities predict that the labor market will weaken in January, with the unemployment rate rising and wage growth declining, as official data continues to catch up to high-frequency indicators. Weaker wage growth will be especially welcomed by the Bank of England following last month's upside surprise. However, with the release of the US CPI later in the day, market reaction may be muted barring a major surprise.

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