GBP/USD Sinks on Weak Labour Data, GBP Faces Critical Week Ahead

GBP/USD fell to 1.3474 on Tuesday, marking a second straight day of losses after the UK's payrolled employment fell by 26,000 in August, five times more than expected.

The swaps curve prices 125 basis points of Bank of England hikes over the next twelve months, which would take Bank Rate to 5.00%. The pair has lost 0.52% over the past month and 1.31% over the past year.

The timing is critical as sterling faces three key events in under 48 hours: the Federal Reserve's decision on Wednesday, the UK's August CPI release also on Wednesday, and the Bank of England's rate decision on Thursday.