The UK Jobs Report, set to be released on Tuesday at 06:00 GMT, is drawing close attention from forex traders as it could shape the British Pound’s (GBP) next move against the US Dollar (USD).
Markets expect the ILO Unemployment Rate t(International Labor Organization) to hold steady at 4.7% for the three months ending in September. Meanwhile, Average Weekly Earnings, including bonuses, are projected to rise by 4.7%, matching the previous reading. When excluding bonuses, wage growth is expected to slow slightly to 4.7% from 4.8%, signaling a mild cooling in the UK labor market.
Independent analyst Michael Hewson noted that despite signs of slower wage growth, further rate cuts by the Bank of England (BoE) seem unlikely in the near term. He added that the UK job market has remained relatively stable, with only modest easing in pay growth and unemployment levels unchanged.
For forex traders, weaker-than-expected wage data could add more pressure on the British Pound, pushing the GBP/USD pair toward the 1.3300 level or even the 1.3260 region—last week’s two-month low. On the other hand, stronger readings could help the Pound rebound, potentially lifting GBP/USD above 1.3365, with further resistance seen at 1.3400 and 1.3440 in forex trading.
