Pound Dollar Exchange Rate Stumbles amid Softening UK Jobs Data

June 10, 2025 - Written by John Cameron

STORY LINK Pound Dollar Exchange Rate Stumbles amid Softening UK Jobs Data

The Pound Sterling weakened against the US Dollar on Tuesday following the publication of the UK’s latest labour data.

At the time of writing, the GBP to USD exchange rate was trading at approximately $1.3483, down roughly 0.5% from the start of Tuesday’s session.

The Pound (GBP) faced fresh selling pressure on Tuesday following the release of some disappointing UK jobs figures.

Data showed that the unemployment rate edged up from 4.5% to 4.6% in April, in line with forecasts, and reached the highest reading since August 2021.

At the same time, wage growth (excluding bonuses) slowed more than expected, easing to 5.2% against projections of dip from 5.5% to 5.4%.

The downbeat figures raised doubts over the strength of the UK labour market and heightened expectations that the Bank of England (BoE) could begin cutting interest rates, which saw Sterling struggle across the board.

The US Dollar (USD) firmed on Tuesday, supported by fresh optimism over the latest round of US–China trade talks.


Negotiations between the two economic giants resumed in London, and hopes for a meaningful breakthrough helped bolster demand for the ‘Greenback’.

Sentiment was further underpinned by encouraging comments from officials involved in the discussions.

US Treasury Secretary Scott Bessent characterised Monday’s meeting as ‘good’, fuelling speculation that both nations could build on the momentum established during last month’s progress in Geneva.

This lifted USD exchange rates throughout the day as markets embraced a more positive outlook on global trade.

Looking ahead, movement in the GBP/USD exchange rate on Wednesday is likely to be driven by key US inflation data scheduled for release.

Both headline and core inflation are expected to accelerate, with core CPI forecast to rise from 2.8% to 2.9%, and headline inflation predicted to climb from 2.3% to 2.5%.

If the data prints in line with forecasts, it could boost the US Dollar, as signs of stubborn inflation may prompt investors to scale back expectations for Federal Reserve interest rate cuts.


Meanwhile, in the absence of any UK economic releases, the Pound may lack direction, leaving Sterling to react primarily to external drivers and broader market sentiment.

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