Weaker-than-expected UK labor figures push the pound lower ahead of key inflation data later Wednesday.
The GBP/USD pair fell to around 1.3535 in early Asian trading, pressured by softer UK labor market data. The unemployment rate held at 4.9% for the three months to June, above the 4.8% consensus forecast.
Average earnings including bonuses slowed to 4.1% from 4.4% in the prior period, signaling potential wage growth deceleration. Economists suggest the pay slowdown may reduce pressure on the Bank of England to raise interest rates this year.
Traders are now focused on Wednesday’s UK CPI release, with money markets pricing a single BoE rate hike by year-end, lifting the benchmark rate to 4.0%.