British Pound reflects mixed performance at the start of UK data-packed week
- The British Pound exhibits a mixed performance against its peers in countdown to key UK data.
- Both the UK inflation and Japan National CPI data are expected to have grown at a faster pace in September.
- UK’s ILO Unemployment Rate is seen rising to 5% in quarter ending August.
The British Pound (GBP) trades mixed against its currency peers at the start of the United Kingdom (UK) data-packed week. Against the Japanese Yen (JPY), the British currency is almost flat at around 210.74.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | -0.00% | 0.03% | -0.23% | -0.38% | -0.09% | 0.05% | |
| EUR | -0.16% | -0.16% | -0.09% | -0.36% | -0.54% | -0.25% | -0.11% | |
| GBP | 0.00% | 0.16% | 0.04% | -0.23% | -0.39% | -0.09% | 0.05% | |
| JPY | -0.03% | 0.09% | -0.04% | -0.24% | -0.49% | -0.11% | 0.04% | |
| CAD | 0.23% | 0.36% | 0.23% | 0.24% | -0.13% | 0.14% | 0.28% | |
| AUD | 0.38% | 0.54% | 0.39% | 0.49% | 0.13% | 0.29% | 0.43% | |
| NZD | 0.09% | 0.25% | 0.09% | 0.11% | -0.14% | -0.29% | 0.14% | |
| CHF | -0.05% | 0.11% | -0.05% | -0.04% | -0.28% | -0.43% | -0.14% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
This week, financial markets will pay close attention to the UK employment data for three months ending August and the Consumer Price Index (CPI) data for September, which are scheduled for Tuesday and Wednesday, respectively.
The Office for National Statistics (ONS) is expected to report that the ILO Unemployment Rate increased to 5% from 4.9% in three months ending July. Average Earnings Including Bonuses is estimated to have risen at a moderate pace of 3.8% Year-on-Year (YoY) against the previous reading of 3.9%.
Deutsche Bank sees UK inflation pushing higher and staying elevated into 2027
Economists at Deutsche Bank expect UK inflation to re-accelerate in the near term, projecting that September will mark “its highest rate all year,” with “headline CPI rising to 3.49% y-o-y, with core CPI pushing to 2.74% y-o-y.” They also look for “Services CPI, we expect, will also rise, picking up pace to 3.71% y-o-y on stronger base effects.”
Looking beyond the immediate print, Deutsche Bank warns that “price pressures” are likely to “increase further,” noting that “energy prices remain on an ascent” and that “lower harvests have already starting to show up in food cost price data.” Against this backdrop, the bank says “our updated projections see CPI taking another step up, with 2027 CPI averaging 3.7% (previously, 3.5%) from 3.2% this year,” while “headline RPI, we expect, will rise from 3.7% y-o-y to 5.2% (previously, 4.8%).”
The economists acknowledge that “our projections sit broadly above the Bank’s forecasts with the exception of two categories: core goods CPI and food & non-alcoholic beverages CPI,” and indicate they “break down how our projections look relative to the Bank of England’s below.” Summing up the trajectory, Deutsche Bank concludes: “We see headline CPI still making its way higher from here, peaking at 4.3% y-o-y in February next year. For the full year now, we see headline CPI averaging 3.2% y-o-y in 2026 and rising to 3.8% y-o-y next year (previous: 3.5%).”
The labor market and the inflation data are expected to have a significant impact on Bank of England’s (BoE) interest rate expectations for the November meeting.
This week, investors will also focus on the UK Retail Sales and preliminary S&P Global PMI data, which will be released on Friday.
Economic Indicator
ILO Unemployment Rate (3M)
The ILO Unemployment Rate released by the UK Office for National Statistics is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the UK Economy. If the rate goes up, it indicates a lack of expansion within the UK labor market. As a result, a rise leads to a weakening of the UK economy. Generally, a decrease of the figure is seen as bullish for the Pound Sterling (GBP), while an increase is seen as bearish.
Read more.Next release: Tue Oct 20, 2026 06:00
Frequency: Monthly
Consensus: 5%
Previous: 4.9%
Source: Office for National Statistics
The Unemployment Rate is the broadest indicator of Britain’s labor market. The figure is highlighted by the broad media, beyond the financial sector, giving the publication a more significant impact despite its late publication. It is released around six weeks after the month ends. While the Bank of England is tasked with maintaining price stability, there is a substantial inverse correlation between unemployment and inflation. A higher than expected figure tends to be GBP-bearish.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
