{"id":596851,"date":"2026-08-18T08:50:19","date_gmt":"2026-08-18T08:50:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/596851\/"},"modified":"2026-08-18T08:50:19","modified_gmt":"2026-08-18T08:50:19","slug":"british-pound-dips-to-fresh-lows-near-1-3520-after-mixed-uk-employment-data","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/596851\/","title":{"rendered":"British Pound dips to fresh lows near 1.3520 after mixed UK employment data"},"content":{"rendered":"

The British Pound<\/a> (GBP) extends its reversal against the US Dollar (USD) on Tuesday as June\u2019s UK unemployment data fails to convince investors in an already risk-off market, as tensions in the Middle East rise. The GBP\/USD trades at 1.3522 at the time of writing, following rejection at the 1.3570 area on Monday.<\/p>\n

UK ILO Unemployment remained steady at 4.9% in the three months to June, against expectations of a decline to 4.8%, according to data released by National Statistics on Tuesday. Employment increased by 83K, well below the 147K rise posted in May. On the positive side, unemployment claims declined by 11K, against expectations of a 11.2K rise following a downwardly revised 6.4K decline in the previous month<\/p>\n

Wage inflation accelerated, with Average Earnings Excluding Bonus increasing by a 3.5% yearly rate in the three months to June, from 3.4% in the previous months, suggesting that salaries will keep pushing inflationary pressures higher.<\/p>\n

Rising geopolitical tensions support the US Dollar<\/p>\n

The US Dollar is also drawing some support from risk-off markets, as the Memorandum of Understanding between the US and Iran signed in June ended on Monday, with the peace process stalled and Washington and Tehran ramping up their rhetoric. <\/p>\n

US President Donald Trump threatened to bomb Oman, an ally, if it \u201cgets in the way\u201d over the Iran deal, and an Iranian military official said that the country\u2019s armed forces will shift to a \u201cfully offensive\u201d stance.<\/p>\n

USD rallies, however, remain limited as the Greenback deals with weaknesses of its own. Strategists at Scotiabank note that \u201csoft US data reports are dampening Fed tightening expectations\u201d while \u201cclear signs of market angst about US fiscal dynamics\u201d are emerging, reflected in \u201cthe steepening US yield curve.\u201d<\/p>\n

Looking ahead, Scotiabank sees the Greenback biased lower in the near-term: \u201cThe retreat in Fed<\/a> tightening expectations and steeper yield curve are enough to put the USD under pressure in the near-term and drive the DXY back to the 97.5\/98.5 range.\u201d<\/p>\n

Economic Indicator<\/p>\n

ILO Unemployment Rate (3M)<\/p>\n

The ILO Unemployment Rate released by the UK Office for National Statistics<\/a> is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the UK Economy. If the rate goes up, it indicates a lack of expansion within the UK labor market. As a result, a rise leads to a weakening of the UK economy. Generally, a decrease of the figure is seen as bullish for the Pound Sterling (GBP), while an increase is seen as bearish.<\/p>\n

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Read more.
\n <\/a><\/p>\n

Economic Indicator<\/p>\n

Average Earnings Excluding Bonus (3Mo\/Yr)<\/p>\n

The Average Earnings Excluding Bonus release is a key short-term indicator of how levels of pay are changing within the UK economy; it is released by the UK Office of National Statistics<\/a>. It can be seen as a measure of growth in “basic pay”. Generally, a positive result is seen as bullish for the Pound Sterling (GBP), whereas a low reading is seen as bearish.<\/p>\n

<\/p>\n

Read more.
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