Investing.com - The pound rose against the U.S. dollar on Wednesday, re-approaching a more than one-month high as it was boosted by upbeat U.K. employment data, while demand for the greenback remained broadly weaker.
GBP/USD hit 1.5426 during European morning trade, the session high; the pair subsequently consolidated at 1.5426, gaining 0.49%.
Cable was likely to find support at 1.5313, Tuesday's low and resistance at 1.5586, the high of January 2.
In a report, the U.K. Office for National Statistics said that the unemployment rate fell to a six-year low 5.7% in the three months to December from 5.8% in the preceding three month-period and better than expectations for a reading of 5.8%.
The report also showed that the claimant count fell by 38,600 last month, compared to expectations for a decline of 25,000.
December’s figure was revised to a drop of 35,800 people from a previously reported decline of 29,700.
Data also showed that the U.K. average earnings index, including bonuses, rose 2.1% in the three months to December, above forecasts for 1.7% and after increasing by 1.8% in the three months to November.
Excluding bonuses, wages rose by 1.7% in the three months to December, below expectations for a gain of 1.8% and following a 1.8% increase in the three months to November.
Separately, the minutes of the Bank of England's February policy meeting showed that members voted unanimously to keep the asset puschase facility program on hold.
Members also voted unanimously to keep interest rates unchanged at a record-low 0.5%.
Meanwhile, the dollar remained under pressure after the Federal Reserve Bank of New York said on Tuesday that its general business conditions index decreased to 7.8 this month from a reading of 10.0 in January. Analysts had expected the index to dip to 8.5 in February.
Separately, the National Association of Home Builders said its Housing Market Index decreased to a four-month low of 55.0 this month from 57.0 in January. Analysts expected the index to rise to 58.0 in February.
Sterling was higher against the euro, with EUR/GBP retreating 0.63% to 0.7385.
Later in the day, the U.S. was to release data on producer prices, housing starts, building permits and industrial production. In addition, the Federal Reserve was to publish the minutes of its January meeting.