The pound-dollar pair is trading at its lowest level in 3 months.

The GBP/USD pair witnessed a sharp decline during trading on Tuesday, affected by data from the UK labor market for the third quarter of the year, which showed an increase in the unemployment rate in the country to 4.3%, reflecting a deterioration in demand for labor in the UK.

This data contributed to strengthening market expectations that the Bank of England may continue its cycle of interest rate cuts to avoid causing further damage to the British economy, which intensified the decline of the GBP/USD.

Although the official data also revealed that average wages rose by 4.3% in the third quarter, the pound was not significantly affected by the surge in wages, as wage pressures in the UK are one of the largest factors fueling inflation in the country.

Conversely, the strength of the US dollar continues, supported by the victory of Republican candidate Donald Trump in the US presidential elections and expectations that Trump will implement expansionary policies to support the economy and the labor market, which could reignite inflation once again.

In light of the potential disparity between future interest rate differentials between the United States and the UK based on global financial market expectations; it appears that cash flows have shifted to buying dollars at the expense of the pound, leading to a decline in the GBP/USD.

As for today's trading, the GBP/USD currency pair fell by about 0.515, trading near the level of 1.2802 dollars, which is the lowest level for the GBP/USD pair since August 15.