Weaker-than-expected UK labor data adds pressure on sterling amid broader dollar strength and geopolitical tensions.
UK payrolls fell by 100K in April, according to provisional estimates, while the unemployment rate edged higher. The Office for National Statistics cautioned the April data is uncertain due to tax year changes and likely to be revised next month.
The mixed report follows softer economic signals and contrasts with prior months of steady job growth. Analysts had anticipated a more modest slowdown, but the sharper decline suggests cooling labor demand.
Sterling weakened against the dollar, which remains supported by elevated US yields and persistent geopolitical risks. Markets are also monitoring US-Iran tensions and oil price volatility.