BBH: Soft UK Jobs Data Still a Supportive Mix for Pound

Brown Brothers Harriman’s Elias Haddad described the UK’s June labour market report as soft. The unemployment rate remained stuck at 4.9%, while private-sector regular pay growth slowed to 2.8%.

BBH characterized the details as a supportive mix for the British pound, even as the headline figures pointed to a cooling labour market. The bank’s FX note highlighted that the data were soft but not disruptive for sterling sentiment.

For sterling traders, the release offers a mixed signal: slower pay growth could ease pressure on the Bank of England, while a steady jobless rate supports the view that the labour market is not deteriorating sharply.