The hammer is dropping on the pound now as traders are starting to feel iffy about today's UK jobs data. The headline showed that payrolls fell for the first time since February 2021, in a sign that perhaps the economic weariness is starting to bite at the labour market.
For the pound, we are seeing GBP/USD fall back under 1.2500 to 1.2475 now as sellers continue to keep near-term control (price still trading under both the 100 and 200-hour moving averages).
Meanwhile, EUR/GBP is also rising back above 0.8700 but faces resistance from its own 200-hour moving average at 0.8718 and then its 200-day moving average at 0.8738.
I shared some thoughts on the pound here yesterday and that sentiment is still very much valid I would say, that being the path of least resistance is likely lower for cable. And when you factor in this latest development, it just adds more weight to that argument.
But for today, there is also the dollar side of the equation to consider with US retail sales coming up later.