{"id":572707,"date":"2026-08-18T12:44:10","date_gmt":"2026-08-18T12:44:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/572707\/"},"modified":"2026-08-18T12:44:10","modified_gmt":"2026-08-18T12:44:10","slug":"british-pound-trades-lower-against-us-dollar-after-soft-uk-employment-data","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/572707\/","title":{"rendered":"British Pound trades lower against US Dollar after soft UK employment data"},"content":{"rendered":"

The British Pound<\/a> (GBP) is down 0.1% to near 1.3530 against the US Dollar (USD) during the European trading session on Tuesday. The British currency comes under pressure after the release of the United Kingdom (UK) employment data for three months ending June.<\/p>\n

UK labour data underline cool jobs market and limited BoE hike impetus<\/p>\n

Analysts at ING characterise the latest UK labour figures as offering \u201cnothing particularly earth-shattering,\u201d but still reinforcing a picture of a cooling jobs market. They note that \u201cpayrolled employment is down a touch,\u201d while cautioning that this headline masks \u201cbig differences between government (which is still actively hiring), consumer services (where job numbers are consistently falling and the pace of decline is getting worse) and the remaining private sector, which is flatlining.\u201d<\/p>\n

ING also points out that \u201cthe unemployment rate is up a touch,\u201d though they stress that the Office for National Statistics has already flagged \u201ctemporary sampling issues with the labour force survey underpinning it (on top of the well-publicised existing problems), so I’d take that data with a pinch of salt.\u201d Even allowing for those statistical caveats, ING concludes that \u201cthe basic story is the same \u2013 the jobs market remains cool, and wage pressures are fairly minimal.\u201d In their view, this backdrop \u201csuggests little impetus for the Bank of England (BoE) to hike rates<\/a> this year.\u201d<\/p>\n

Going forward, investors will focus on the UK Consumer Price Index (CPI) data for July, which will be released on Wednesday. Investors will pay close attention to UK inflation to get fresh cues regarding the BoE\u2019s monetary policy outlook<\/a>.<\/p>\n

Meanwhile, the US Dollar holds a slight recovery move, with the US Dollar Index (DXY) trading slightly higher to near 99.65. The USD Index is less likely to hold the recovery move from the fresh two-month high of 99.30 posted on Monday, as traders don\u2019t expect the Federal Reserve<\/a> (Fed) to deliver an interest rate hike in the September policy meeting.<\/p>\n

Going forward, investors will focus on the Federal Open Market Committee (FOMC) minutes of the July policy meeting, which will be released on Wednesday.<\/p>\n

Economic Indicator<\/p>\n

Consumer Price Index (YoY)<\/p>\n

The United Kingdom (UK) Consumer Price Index (CPI), released by the Office for National Statistics<\/a> on a monthly basis, is a measure of consumer price inflation \u2013 the rate at which the prices of goods and services bought by households rise or fall \u2013 produced to international standards. It is the inflation measure used in the government\u2019s target. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.<\/p>\n

<\/p>\n

Read more.
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