The pound fell after weak UK employment data.

The pound fell to an 11-day low against the US dollar and a near one-week low against the euro, following data showing further cooling in the UK labor market, with wage growth slowing down. The unemployment rate unexpectedly rose from 5.1% in the previous quarter to 5.2%. Average earnings excluding bonuses grew by 4.2% in the quarter, down from the previous 4.4%. The number of employees on payrolls decreased by 6,000 from November to December. This data solidified expectations of further interest rate cuts, with data from the London Stock Exchange Group showing a 72% likelihood of a 25 basis point rate cut in March. According to data from the London Stock Exchange Group, the pound fell to an 11-day low of $1.3549 against the US dollar after the data was released, down from $1.3612 before the data. The euro rose from 0.8700 pounds to a one-week high of 0.8730 pounds.