The GBP/SGD currency pair settled at Friday’s low of 1.7052, its weakest level since November 20th 2025. Easing labor market conditions and softer inflation in the United Kingdom have bolstered the likelihood that the Bank of England will deliver additional interest rate cuts later this year.
Headline annual inflation has slowed to 3.0% in January from 3.4% in December, matching consensus projections.
However, services inflation – a key gauge of domestically driven price pressures – has eased only slightly to 4.4% from 4.5%, overshooting expectations of 4.3%.
At the same time, UK wage growth has been the slowest since the three months to January 2022. Regular pay, excluding bonuses, increased 4.2% year-on-year to GBP 691 per week in the three months to December, slowing from a 4.4% surge in the preceding period.
And, the UK unemployment rate went up to 5.2% in the three months to December from 5.1% in the previous period.
The data added to the case for further policy easing by the Bank of England.
Interest rate markets are now reflecting about an 85% probability that the Bank of England will deliver a 25 bp rate cut next month. By the end of the year, pricing implies two 25 bp cuts are fully factored in.
The exotic Forex pair lost 1.00% for the week.
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