GBP falls on UK jobs report

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waterman

Written by Dan Waterman
October 14th 2025
Traders react negatively to UK jobs report, pilling yet more pressure on the BoE & Chancellor Reeves..

Sterling is down 0.5% against the majors today..

The UK's unemployment rate ticked higher in August 
(4.8% v 4.7%) and the data shows the number of payrolled employees dropped by 93,000 versus this time last year.

Another 'downer' was the UK added 91,000 jobs in the last 3-months versus 232,000 jobs the previous 3-months. Yes negative news, but it's still nowhere near what some economists had predicted for the UK's labour market this year.

The news does increase the chances of Bank of England interest rate cuts, but this isn't the reason for GBP's devaluation today. Both the US-China trade war and what the Chancellor may do next month (even with today's data) is why we see a £ sell-off.

Since June, the Pound has been in this weird 'bubble' where any good news for the UK or beta currencies, sees it increase slightly and any bad news sees it decrease a rather unfair amount. 

Last year's National Insurance hike has fully worked its way through the system now and has just not worked in anyway. Businesses have been on 'hold' with investment, employment is down and higher tax payers have left the country. Now what will Reeves do?

Renewed tensions between the US & China today sees US stocks down and safe-haven currencies up. US treasury secretary Bessent confirms President Trump is meeting President Xi soon, but accuses Beijing of trying to damage the global economy in the same speech.

All hopes lie on a positive UK GDP result Thursday morning for a Sterling pullback..