GBP Loses Ground on Soft UK Labour Figures

The British Pound (GBP) declined below 1.3550 against the US Dollar (USD) during early Asian trading hours on Wednesday, as soft UK labour figures weighed on sentiment.

Data released by the Office for National Statistics showed that the UK Unemployment Rate remained steady at 4.9% in the three months to June, but missed market expectations of a decrease to 4.8%. Average Earnings Including Bonus fell to 4.1%, down from 4.4% in May.

Economists suggested that the pay slowdown could deter the Bank of England (BoE) from raising interest rates this year, despite money market pricing indicating one rate hike by the end of the year, lifting the Bank rate from 3.75% to 4.0%. The UK Consumer Price Index (CPI) inflation data release later on Wednesday will be closely watched.