Sterling down 0.5% after latest UK jobs data

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waterman
Written by Dan Waterman
June 10th 2025
Money markets price in more UK interest rate cuts this year..

The Pound is in the red today after traders move out of the currency following the latest UK jobs report.

The overall data release is of no surprise and the mechanical reaction to devalue GBP is neither, but still 0.5% has been lost in the build-up to potentially a more significant event of UK GDP on Thursday. 

UK wages fell in the month of April (an important driver of inflation) more than anticipated. 5.3% was the result, down from 5.6% previous and better than the 5.5% consensus. 

Unemployment rose to 4.6% from 4.5% and job vacancies fell for a rather unsettling 35th consecutive quarter. This clearly points to a weaker labour market after pressure from the government's tax and minimum wage hikes.

It's likely the trend will continue for the month's ahead and this is why money markets have increased their expectations of more than expected interest rate cuts from the BoE this year from 35bp to 50bp+.

GBP v EUR has fallen to a 1-month low for now due to the news.