GBP/USD bounces back from monthly lows as manufacturing activity improves

US Treasury yields climbed on solid US economic data. The US Bureau of Labor Statistics revealed that job openings increased from 8.745M to 8.756M, above estimates of 8.75M in February. Layoffs ticked up from 1.6M to 1.7M while the quitting rate rose modestly to 3.5M. In other data, Factory Orders expanded by 1.4% MoM in February, a substantial recovery from January’s -3.8% plunge and above forecasts of 1%.

Following the data, the US 10-year Treasury note coupon rose to 4.409%, its highest since November of last year. Conversely, the US Dollar Index (DXY), which tracks the buck's performance against other six currencies, dropped 0.17% to 104.79.

Recently, Federal Reserve officials have crossed the wires. The Cleveland Fed President Loretta Mester expects the Fed could cut rates later this year, yet doesn’t see the first one at the upcoming meeting. She sees bigger monetary policy risks if the Fed cuts too soon, adding that the economic strength of the economy gives the central bank space before easing policy.

Across the pond, S&P Global revealed that Manufacturing activity, as measured by the PMI in the UK, rose from 47.5 to 50.3, exceeding estimates of 49.9. According to the survey, it was the first month of expansion in twenty, thanks to recovering demand.

Ahead in the week, the UK economic docket will feature S&P Global Services PMI. On the US front, traders’ eye Fed speeches, along with the release of the ADP Employment Change report on Wednesday and the ISM Services PMI