FX.co ★ Sterling Little-Changed After UK Jobs Data

The pound remained steady, trading just above $1.34, a slight increase from the four-week low of around $1.338 seen on January 15. This development came as investors assessed the latest UK labor market figures amid persistent geopolitical tensions affecting the dollar. UK unemployment remained steady at 5.1% for the three months leading to November, maintaining levels near pandemic-era highs and slightly above the anticipated 5%. Additionally, annual wage growth, excluding bonuses, decelerated to 4.5%, marking the slowest rate since the three months ending in April 2022. Concurrently, the dollar faced pressure due to renewed tariff threats from US President Trump as global leaders gathered in Davos. Trump remarked that Europe might be unlikely to "push back too much," following his warning over the weekend about potential new tariffs on eight European countries unless the US is allowed to "buy" Greenland. Such tensions could disproportionately impact the UK and Germany, given their status as Europe's leading exporters to the US market.