GBP/USD Falls as UK Jobs Market Weakens Amid Rising USD
The GBP/USD currency pair is experiencing downward pressure as the UK jobs market weakens and the US dollar gains strength.
According to the Office for National Statistics, unemployment remained at 4.9% in the three months to June, slightly above expectations of 4.8%. Vacancies fell by 6,000 to 707,000, the lowest level since 2021, largely driven by smaller businesses citing higher labor and operating costs.
The decline in vacancies suggests a weakening labour market that continues to slow down. Average earnings rose slightly higher than expected at 3.5%, but regular wage growth in the private sector fell to a six-year low of 2.8%.
The US dollar is rising on safe-haven demand due to renewed geopolitical uncertainty, particularly with Iran's shift to a fully offensive military posture and President Trump's statement on not seeking an extension to the U.S. ceasefire with Iran.