Market Outlook: Data Strengthens BoE Rate Cut Possibility, Weighs on Sterling

Forex - The pound fell following data indicating that the unemployment rate in the UK rose more than expected, and wage growth slowed slightly less than anticipated. The unemployment rate increased from 4% in the previous quarter to 4.3% during the three-month period ending in September. Average earnings, excluding bonuses, rose by 4.8% year-on-year, compared to an expected increase of 4.7%. In a note from XTB, Kathleen Brooks stated, "The higher unemployment rate may lead the market to start pricing in a greater likelihood of a larger interest rate cut from the Bank of England in the coming month."