17.02.202607:54:30UTC+00Sterling Slides on Cooling Jobs Data

The British pound slipped to $1.356, its weakest level since February 5, after fresh data pointed to further softening in the UK labor market and strengthened expectations of interest rate cuts by the Bank of England.

According to the Office for National Statistics, average weekly earnings including bonuses rose 4.2% in the three months to December, the slowest pace since the three months to August 2024 and below the 4.6% increase forecast by economists. Excluding bonuses, wage growth came in at 4.2%, in line with expectations.

At the same time, the unemployment rate rose to 5.2%, its highest level since early 2021 and slightly above the consensus estimate of 5.1%, underscoring a gradually cooling labor market.

Investors are now focusing on inflation data due Wednesday. Headline inflation is expected to slow to 3.0% in January, which would be the lowest rate since March 2025, while core inflation is projected to ease to 3.1%, its lowest level in more than four years.