GBP/USD is on the back foot amid concerns over the Bank of England's stance.
The British pound sterling, in partnership with the US dollar, has retreated, with the current GBP/USD exchange rate at 1.2488.
Recent statistics unveiled that the unemployment rate in the UK climbed to 4.3% in July, aligning with expectations. In the preceding month, this figure was at 4.2%. Average wages for the three months ending in July witnessed a notable increase of 8.5%, surpassing the projected growth of 8.2% and the prior calculation of 8.4%.
August saw a meager rise of 0.9 thousand in jobless claims, contrasting with the anticipated expansion of 17.1 thousand. July's estimate for this indicator was 7.3 thousand.
Collectively, the British labor market continues to display resilience, marked by sustained wage hikes and job generation, effectively countering inflationary pressures. While this performance is robust and laudable, the Bank of England might adopt a different perspective.
Given the strength of employment data, the BoE could opt to persist with interest rate hikes.
Today, the UK is set to release a fresh batch of statistics, this time centered on industrial production and its components.