British Pound drops against Yen after UK employment data release

The British Pound falls to near 215.95 against the Japanese Yen after the UK employment data for for three months ending in June.
The UK ILO Unemployment Rate remains steady at 4.9%. Average Earnings Excluding Bonuses grew at a faster pace of 3.5% YoY.
Investors await the UK CPI data for July, which will be released on Wednesday.

Sagar Dua FXStreet

The British Pound (GBP) faces selling pressure against the Japanese Yen (JPY) after the release of the United Kingdom (UK) labor market data for three months ending in June, dropping to near 215.95.

The Office for National Statistics (ONS) has reported that the economy created 83K fresh jobs, lower than 147K in the quarter ending May. The ILO Unemployment Rate remains steady at 4.9%, while it was expected to arrive lower at 4.8%.

Average Earnings Excluding Bonuses, a key measure of wage growth, rose at a faster pace of 3.5% YoY vs. estimates and the prior release of 3.4%. The wage growth measure including Bonuses grew in line with 4.1% projections, slower than the previous reading of 4.4%, revised higher from 4.3%.

Meanwhile, investors brace for more volatility in the British Pound this week as the UK Consumer Price Index (CPI) data is scheduled to be published on Wednesday. The data is expected to show that headline inflation accelerated to 2.9% Year-on-Year (YoY) from 2.6% in June.

While the core CPI – which excludes volatile components of food, energy, alcohol and tobacco – is seen growing at a modest pace of 2.5% against the previous reading of 2.6%.

The inflation data will likely have a significant impact on the Bank of England’s (BoE) monetary policy expectations.

Currently, the BoE is expected to hold interest rates steady the entire year.

BoE seen on hold through year-end as UK growth momentum fades

Strategists at Rabobank underline a steady policy outlook, noting that “it is RaboResearch’s view that the BoE will likely keep interest rates on hold through to the end of the year.”

On the Tokyo front, the Japanese currency broadly underperforms even as financial markets are confident about a Bank of Japan (BoJ) interest rate hike in September.

Analysts at MUFG highlight that market expectations for further BoJ tightening remain robust, with “the pricing for a 25bp hike at the next meeting in September remains elevated, implying around an 80% probability of a hike.”

Economic Indicator

Consumer Price Index (YoY)

The United Kingdom (UK) Consumer Price Index (CPI), released by the Office for National Statistics on a monthly basis, is a measure of consumer price inflation – the rate at which the prices of goods and services bought by households rise or fall – produced to international standards. It is the inflation measure used in the government’s target. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.

Why it matters to traders?

The Bank of England is tasked with keeping inflation, as measured by the headline Consumer Price Index (CPI) at around 2%, giving the monthly release its importance. An increase in inflation implies a quicker and sooner increase of interest rates or the reduction of bond-buying by the BOE, which means squeezing the supply of pounds. Conversely, a drop in the pace of price rises indicates looser monetary policy. A higher-than-expected result tends to be GBP bullish.

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.

GBP/USD drops toward 1.3500 after weak UK jobs data

GBP/USD extends losses toward 1.3500 in European trading hours on Tuesday. The UK ILO Unemployment Rate held steady at 4.9% in the three months to June, against a forecast of 4.8%, while Employment Change arrived at 83K in the same period versus 147K previous. Weak UK labor data keep the British Pound under pressure, driving the pair lower.

EUR/USD flat lines below two-month high amid oil-driven inflation fears

The EUR/USD pair holds steady around the 1.1575-1.1580 region during the Asian session, and for now seems to have stalled the previous day's modest pullback from a two-month top. However, a modest US Dollar uptick warrants some caution before positioning for the resumption of the recent move higher from the 1.1350 area, or the July monthly swing low.

Gold remains depressed below $4,400 amid oil-driven inflation fears

Gold sticks to modest intraday losses below the $4,400 mark heading into the European session on Tuesday, and seems to have snapped a two-day winning streak. The US Dollar builds on the overnight bounce from a two-month trough as inflation risks stemming from higher oil prices underpin prospects for at least one interest rate hike by the US Federal Reserve in 2026.

Ripple and Stellar remain under bearish pressure as corrective declines cap upside

Ripple and Stellar remain under pressure as broader market uncertainty and weak technical momentum weigh on both altcoins. XRP is hovering below the key $1 mark on Tuesday while XLM continues its corrective decline below $0.157. Meanwhile, mixed derivatives and on-chain signals indicate cautious sentiment, leaving both cryptocurrencies vulnerable to further downside.

Silver’s new era: Supply deficits meet exploding industrial demand

Silver has experienced a wild ride in 2026, but The Silver Institute President and CEO Michael DiRienzo says investors shouldn’t let the volatility obscure a much bigger story: the underlying silver market remains remarkably strong.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.