GBP/USD declines after UK jobs data

The GBP/USD pair fell to a near-term low of 1.2620 in Tuesday trading, as broader markets shifted their focus from upbeat economic data to bidding up the US Dollar, sending the Pound Sterling into the new year’s lows.

Broad-market bets of a rate cut from the Bank of England are steadying after Tuesday’s labour data print, with money markets now pricing in a total of 134 basis points in rate cut from the BoE through 2024. The UK’s Claimant Count Change in December was 11.7K, the indicator’s highest reading since June’s 16.2.

The UK Unemployment Rate held steady at 4.2% for the quarter ended November, in line with market expectations, though Average Earnings Including Bonuses slipped to 6.5% compared to the forecast decline from 7.2% to 6.8%.

The UK also had its best jobs additions figure since May, adding 73K in November compared to the previous print of 50K.