Investing.com - The pound dropped to nearly five-year lows against the U.S. dollar on Wednesday, after data showed that the U.K. unemployment rate remained unexpectedly unchanged in January and that average U.K. earnings rose less-than-expected.
GBP/USD hit 1.4668 during European morning trade, the pair's lowest since June 2010; the pair subsequently consolidated at 1.4673, sliding 0.51%.
Cable was likely to find support at 1.4343 and resistance at 1.4845, Tuesday's high.
In a report, the U.K. Office for National Statistics said that the rate of unemployment was unchanged at 5.7% in the three months to January, disappointing expectations for a decline to 5.6%.
The report also showed that the claimant count fell 31,000 in February, compared to expectations for a decline of 30,000 people. January’s figure was revised to a drop of 39,400 people from a previously reported decline of 38,600.
Data also showed that that the U.K. average earnings index, including bonuses, rose by 1.8% in the three months to January, missing forecasts for a gain of 2.2% and after increasing by 2.1% in the three months to December.
Excluding bonuses, wages rose by 1.6% in the three months to January, below expectations for a gain of 1.8% and following a 1.7% increase in the three months to December.
In addition, the minutes of the Bank of England's most recent policy meeting showed that all nine members of the Monetary Policy Committee were in favor of leaving the key interest rate at a record low of 0.5% and making no changes to the central bank's £375 billion asset-purchase program.
Meanwhile, investors awaited the Federal Reserve's monthly policy statement due later Wednesday to see if it would drop its reference to being patient before raising rates and signal that it is ready to hike rates depending on economic data.
Sterling was also lower against the euro, with EUR/GBP declining 0.59% to 0.7227.