21.04.202607:36:59UTC+00Pound Near $1.35 on Middle East Tensions and Mixed UK Labor Data

The British pound hovered around $1.35, just below last week’s three-week high, as investors assessed both developments in the Middle East and the latest UK labor market data. US President Donald Trump confirmed that the two-week ceasefire between Washington and Tehran is set to expire on Wednesday evening, US time. At the same time, US Vice President JD Vance and an Iranian delegation are scheduled to arrive in Pakistan later today for peace talks.

On the economic front, UK unemployment fell to 4.9% in the three months to February 2026, down from 5.2% in the previous period and beating market expectations. However, wage growth showed signs of cooling: average earnings including bonuses slowed to 3.8%, while pay excluding bonuses eased to 3.6%, though both readings remained slightly above forecasts. UK payrolls declined by 11,000 in March, the steepest drop since November 2025, underscoring the economic pressures stemming from the conflict.