GBP Extends Losses as Mixed UK Employment Data Fails to Support Pound

The British Pound (GBP) continued its downward trend against the US Dollar (USD) on Tuesday, hovering near five-week lows at around 1.3465 during London session opening times.

Mixed UK employment data failed to provide support for the Pound, with the ILO Unemployment Rate remaining steady at 4.9% in the three months to July, contrary to market expectations of a slight increase to 5%.

However, jobless claimants rose by 27.8K, more than triple the anticipated 8.3K increase, casting a shadow over the otherwise stable unemployment rate.

The Bank of England's (BoE) upcoming monetary policy meeting on Thursday will be closely watched, with analysts expecting interest rates to remain unchanged unless UK Consumer Prices Index (CPI) figures show a significant jump in inflation.