Sterling Falls Amid Weak UK Jobs Report, Dollar Gains Ahead of Fed Decision

Britain's sterling slid lower on Tuesday after a weak UK jobs report added to its earlier losses from Monday, while the dollar strengthened across the board ahead of the Federal Reserve's decision on Wednesday.

The pound fell to 1.3470, down 0.23%, and the euro retreated to 1.1537, down 0.11%, by 04:07 ET (08:07 GMT), according to Investing.com.

Data released showed private sector payrolls dropped 34,000 in August, a decline of 0.8% year-over-year, with hospitality and retail hiring shrinking more than 3% annually.

ING's UK economist James Smith said the data suggests the Bank of England will keep rates unchanged at its Thursday meeting, as wage growth has plateaued near 2.9%, consistent with the BoE's 2% inflation target.