GBP Edges Higher Ahead of Key UK Jobs and Inflation Data

The British pound has edged higher against the US dollar as traders position themselves ahead of key UK economic data releases this week.

A closely-watched jobs report and consumer price index (CPI) figures are due out later in the week, which could influence the Bank of England's next policy move.

Market participants expect the jobs report to show a further cooling in wage growth, with average earnings excluding bonuses forecast to rise by 5.7% in the three months to November, down from 5.9% in the previous period.

A weaker-than-expected reading could prompt traders to bring forward their rate-cut bets, potentially weighing on the pound.