Pound Sterling Falls After Missed Payrolls Weigh on Interest Rate Hike Debate

The British Pound fell against both the Euro and US Dollar after UK payrolls dropped more sharply than expected, potentially giving the Bank of England another reason to leave interest rates unchanged this week.

GBP/USD traded at 1.3475, down 0.20% on the day, while GBP/EUR slipped 0.12% to 1.1677 in early Tuesday trading.

The ONS figures showed an initial 26,000 payroll decline in August against expectations for 5,000, with July's fall revised to 19,000 from 13,000.