GBP shows strength amid mixed UK data – BBH

FXStreetDec 16, 2025 12:32 PM

View all comments（0）



The Pound Sterling (GBP) outperformed as UK labor market conditions eased and the December PMI signaled firmer private sector growth, while markets fully priced in an upcoming Bank of England rate cut, BBH FX analysts report.

UK unemployment hits highest since Q1 2021

"GBP is outperforming. UK labor market condition continued to ease in October while the UK December PMI points to firmer private sector growth traction. The Bank of England (BOE) remains on track to deliver a rate cut on Thursday (93% priced-in) but the easing path ahead should remain gradual. We expect GBP to continue underperforming on the crosses."

"The unemployment rate matched consensus at 5.1% (highest since Q1 2021) vs. 5.0% in September and job vacancies have fallen further. This has kept the vacancies-to-unemployment ratio well below its estimated equilibrium level (0.50), indicative of weaker labor demand."

"Wage growth slowed but remains a key source of underlying inflation pressure given that labor productivity is estimated at -0.2% in 2025. The policy-relevant private sector regular pay fell to the lowest since late 2020 at 3.9% y/y (consensus: 3.8%) vs 4.2% in September. Finally, the composite PMI increased to a 2-month high at 52.1 (consensus: 51.5) vs. 51.2 in November, reflecting an improvement in services and manufacturing activity."

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

TSMC Second Quarter Net Profit Surges 77.4% to Record, AI Chip Demand Drives Results Above Estimates

TradingKey - On July 16, Eastern Time, TSMC (TSM) released its second-quarter 2026 financial results. The company's revenue for the quarter reached TWD 1.27 trillion, up 36.0% year-on-year and 12.0% quarter-on-quarter. In US dollar terms, revenue was USD 40.2 billion, representing a 33.7% year-on-year increase and reaching the upper end of the previous guidance range of USD 39.0 billion to USD 40.2 billion.

Micron (MU) Stock Crashes Below $910 as China’s CXMT Plans an $8.5B IPO; Is the DRAM Bull Cycle Cracking?

Micron fell 7% on July 15 as China’s CXMT announced an $8.5B IPO and the US government considered new HBM export restrictions. At $904, the 50-day EMA and $869 support are all that stand between bulls and a deeper drop. KeyBanc says buy it.

South Korea’s First Rate Hike in Three and a Half Years: Korean Stock Declines Widen, KOSPI Slumps Over 6%, SK Hynix Plunges Over 11%

The Bank of Korea's rate hike announcement triggered a stock market sell-off, with the KOSPI dropping 6%, Samsung Electronics falling over 8%, and SK Hynix plunging more than 11%.

Japan and South Korea Stocks Hammered at Open: KOSPI Tumbles 5%, SK Hynix Plunges 9%, Samsung, Kioxia and SoftBank Follow Lower

Japanese and South Korean stock markets opened sharply lower, with the KOSPI Index plunging 5% and the Nikkei 225 falling over 2%. SK Hynix led the decline with a drop of more than 9%, while Samsung Electronics, Kioxia, and SoftBank also followed the downward trend.

TSMC (TSM) Stock Forecast: June Revenue Up 68%, Q2 Earnings Tomorrow; Is $438 the Next Stop?

TradingKey - TSMC reports Q2 2026 earnings tomorrow, July 16. June revenue surged 68% year-on-year. Consensus: $40B revenue, $3.83 EPS. At $426 on trendline support, the key question is whether tomorrow’s print triggers a move back toward $438.

Featured Tools