Pound Plummets to Fresh Lows Amid BoE Rate Cut Bets

The British pound has fallen to a fresh low near 1.3520 against the US dollar, extending its decline following mixed UK employment data that boosted expectations for a Bank of England rate cut.

The Office for National Statistics reported a rise in unemployment from 4.0% to 4.2%, with an employment change decline of 23,000 jobs missing forecasts of a modest gain.

However, average earnings including bonuses rose by 5.6%, slightly above the 5.5% forecast.

This mixed picture is seen as dovish for the BoE, increasing the likelihood that interest rates will be cut sooner than anticipated.