GBP/USD continues its third consecutive winning streak, trading above the 1.2690 level during Friday’s Asian session.

Highlights:

• The GBP/USD is gaining ground as the US Dollar moves into negative territory.
• Upbeat UK data may have added to the British Pound’s strength.
• The Greenback’s losses were limited by positive US employment data.

The British Pound continued its winning streak on Friday, trading at 1.2690 against the US Dollar during the Asian session. It has risen for three straight days.

The British Pound gained ground against the US Dollar following the release of better-than-expected data from the UK. However, the upbeat reports from the US may have capped the advance of the exchange rate. According to the UK’s Consumer Credit report, borrowing by individuals increased to £2.005 billion in November from £1.411 billion in October.

The Composite Purchasing Managers’ Index for December released by the S&P Global and CIPS showed that it improved to 52.1 from 51.7. On the other hand, the Services PMI rose to 53.4 from 52.7.

The British Pound is likely to face selling pressure due to the country’s economic outlook. Business executives have urged the BoE to lower interest rates in order to support the struggling economy.

The yield on 10-year US Treasury bonds is currently at 3.99%, while that of two-year notes is at 4.37%. The US Dollar was supported by encouraging employment data, which was released on Thursday.

The ADP National Employment Change report released in December showed that the US added 164K jobs. It exceeded the previous estimate of 101K and the market’s expectation of 115K. The number of people filing claims for unemployment benefits also decreased to 202K during the week ended December 29, from 219K the previous week.

The S&P Global Composite Purchasing Managers Index showed that business activity decreased slightly in March. It came in at 50.9, which was below the market consensus of 51.0.

The market is expecting more data on the US employment market, such as the Nonfarm payrolls report for December and the average hourly earnings for that month. The Institute for Supply Management’s services index is also scheduled to provide insight into the country’s service sector.