The British pound fell below $1.36, touching its weakest level since February 5, after fresh data signaled further softening in the UK labor market, reinforcing expectations of interest rate cuts from the Bank of England. Figures from the Office for National Statistics showed average weekly earnings, including bonuses, rose 4.2% in the three months to December, the slowest pace since the three months to August 2024 and below forecasts of 4.6%. Excluding bonuses, wage growth matched expectations at 4.2%. Meanwhile, the unemployment rate climbed to 5.2%, its highest level since early 2021 and slightly above economists’ expectations of 5.1%, pointing to a gradually cooling labor market. Investors are now turning their attention to inflation data due Wednesday. Headline inflation is projected to ease to 3.0% in January, the lowest since March 2025, while core inflation is expected to edge down to 3.1%, marking a more than four-year low.