Sterling moves to a two-week trough after UK labor data

Economies.com
2024-06-11 07:47AM UTC

Sterling declined in European trade on Tuesday against a basket of major rivals, resuming losses and almost touching two-week lows following UK labor data.

 

The data shows the UK labor sector is loosening, in turn reducing pressures on the Bank of England and boosting the odds of a rate cut next week.

 

The Price 

 

GBP/USD fell 0.15% to $1.2714, with a session-high at $1.2741.

 

The pair closed up 0.1% on Monday away from a two-week low at $1.2688. 

 

UK Labor Data

 

Earlier data showed the UK unemployment rate up to 4.4% in April from 4.3% in March. 

 

Average wages rose 5.9% in April, above estimates of 5.7%. 

 

UK jobless claims rose by 50.4 thousand in May, up from 8.4 thousand in the previous reading.

 

UK Rates 

 

The data underpinned the odds of a UK 0.25% interest rate cut in June as markets now await mainline UK inflation data next week.

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