Ella 
GBP/USD is trading lower against the US dollar after rising in the previous two sessions, trading around 1.3040 during Asian trading on Tuesday. The pair remains subdued after the UK released mixed employment data.
The UK ILO unemployment rate slowed to 4.0% in the three months to August, down from 4.1% in July and below market forecasts of 4.1%. The number of employed people increased by 37,300 in August from the previous value of 26,500. At the same time, average salary, including bonuses, increased by 4.9% annually, in line with expectations, but slightly lower than the previous value of 5.1%.
The U.S. dollar (USD) found support as expectations grew that the U.S. Federal Reserve would not cut interest rates aggressively following a strong jobs report and concerns about sticky U.S. inflation. According to the CME FedWatch tool, the market is currently pricing in an 88.2% chance of a 25 basis point rate cut in November, with no expectation of a substantial 50 basis point rate cut.
On Monday, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, reiterated the Fed’s reliance on data. According to Reuters, Kashkari reiterated the familiar views of Fed policymakers on the strength of the U.S. economy, noting that despite the recent pickup in overall unemployment, inflationary pressures continue to ease and the labor market is strong.
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