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Sterling slips as UK wage growth cools and jobless rate rises

ReutersFeb 17, 2026 7:12 AM

- The pound fell on Tuesday after data showed Britain's unemployment rate rose in December while wage growth slowed more than expected, potentially adding to the case for further Bank of England rate cuts.

Sterling GBP=D3 was last down 0.29% against the dollar at $1.359, having traded at $1.3613 before the figures were released.

One measure of wage growth, year-on-year growth in average weekly earnings over a three-month period, slowed more than expected to 4.2%, from 4.6% in November.

The data showed the unemployment rate rose to 5.2% in December, up from 5.1% a month earlier but in line with economists' expectations.

The pound has risen around 0.8% this year against the dollar as the U.S. currency has suffered from the Trump administration's unpredictable economic policies and as the British economy has shown some signs of life.

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