From us FX and Commodity Roundup:

The pound fell against the dollar after UK employment data indicated weakening labor market conditions.

National Statistics Office (ONS) reported that the UK unemployment rate rose to 4.3% in the three months to September, up from 4% in the previous period and beating expectations of 4.1%, suggesting further signs of weakness in the economy.

Meanwhile, the US dollar index (DX-Y.NYB), which tracks the dollar against six major currencies, rose to a four-month high above 105.82. The dollar’s upward momentum was supported by Donald Trump’s victory in the US presidential election, with his party likely to control both houses of Congress.

Investors anticipate that Trump’s policies, including tariff hikes and corporate tax cuts, could increase inflation, prompting the Federal Reserve to maintain a measured pace in rate adjustments. The CME FedWatch tool points to a likely 25 basis point cut in December, though investor sentiment has turned more cautious on that prospect.

Against the euro (GBPEUR=X), sterling was also lower, trading at €1.2051, as concerns about the UK’s economic resilience weighed on the currency.