Pound Edges Higher as UK Jobs Data Softens
Daily Currency Update
The Pound edged higher on Tuesday after UK labour market data showed early signs of cooling. Wage growth slowed, and job creation eased, supporting expectations that the Bank of England may adopt a more cautious policy stance in the months ahead.
Today’s Currency Shifts
- EUR/USD: rose 0.24% to 1.1111
- GBP/USD: increased 0.17% to 1.3198
- AUD/USD: gained 0.65% to 0.6414
- NZD/USD: advanced 0.68% to 0.5896
- USD/JPY: declined 0.35% to 147.94
- USD/CHF: fell 0.44% to 0.8424
- USD/CAD: slipped 0.08% to 1.3963
Key Market Drivers
UK Labour Market Shows Signs of Cooling
Recent data from the Office for National Statistics (ONS) indicates that average weekly earnings in the UK, excluding bonuses, grew by 5.6% from January to March 2025, marking the slowest growth since November 2024. The unemployment rate edged up to 4.5%, its highest since mid-2021, while job vacancies decreased by 42,000 to 761,000.These signs of a cooling labour market may prompt the Bank of England to consider further interest rate cuts.
Commodity Currencies Benefit from Risk-On Sentiment
The Australian and New Zealand Dollars outperformed, with gains of 0.65% and 0.68% respectively. This strength is attributed to improved risk appetite among investors and a rebound in commodity prices.
Currency Watch – Key Moves Today
| Pair | Price | Daily Change |
|---|---|---|
| EUR/USD | 1.1111 | ▲ 0.24% |
| GBP/USD | 1.3198 | ▲ 0.17% |
| AUD/USD | 0.6414 | ▲ 0.65% |
| NZD/USD | 0.5896 | ▲ 0.68% |
| USD/JPY | 147.94 | ▼ 0.35% |
| USD/CHF | 0.8424 | ▼ 0.44% |
| USD/CAD | 1.3963 | ▼ 0.08% |
Looking Ahead
Investors will closely monitor upcoming economic data releases, including U.S. inflation figures and central bank commentary, for further insights into monetary policy directions. The Bank of England’s cautious stance suggests that significant policy changes are unlikely in the near term, keeping markets attentive to economic indicators and geopolitical events.