Sterling weighed down after UK jobs report

The pound is sitting lower across the board, with it seeming to come from a more negative reaction to the UK jobs report here. Overall, it’s more of a mixed report and it does continue to point towards some further softening in the labour market. As mentioned then, the wage numbers might be more mixed at first glance. But at the balance, it still points to moderation in price pressures and keeps the BOE on track to cut rates; albeit not hurriedly I would say.Still, we are seeing some light shifts in BOE pricing. The next full 25 bps rate cut is slated for March next year while odds of a move in February next year have gone up a fair bit. It’s interesting to see how traders are reacting here as I’d wager more focus should be put on the inflation numbers instead. That especially since ONS continues to struggle with accuracy on labour market data. But hey, that’s just me.In any case, we are seeing GBP/USD slump further on the day in falling from 1.3340 to 1.3285 now after the report. The drop also comes after a rejection of the 100-hour moving average (red line) as sellers continue to keep a more bearish near-term bias for now.
This article was written by Justin Low at investinglive.com.

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💬 DMK Insight

**DMK Insight:** The recent dip in the pound reflects growing concerns over the UK labor market, as the mixed jobs report signals potential economic headwinds. Traders should remain cautious, as further softening in employment could lead to increased volatility in currency markets. Monitoring wage growth trends will be crucial, as they may influence future monetary policy decisions by the Bank of England.