Investing.com - The pound remained lower against the U.S. dollar on Wednesday, as unexpectedly weak U.K. jobs data continued to weigh on sterling, while Bank of England minutes showed that policymakers remain divided over easing.
GBP/USD hit 1.5224 during U.S. morning trade, the pair’s lowest since April 5; the pair subsequently consolidated at 1.5229, retreating 0.87%.
Cable was likely to find support at 1.5177, the low of April 1 and resistance at 1.5371, the session high.
The Office for National Statistics said the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.
Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.
Meanwhile, the minutes of the BoE’s April meeting showed that policymakers remained split over monetary policy.
Outgoing Governor Mervyn King and two other policymakers backed further monetary easing, while six voted against. The vote to leave interest rates unchanged at 0.5% was unanimous.
Sentiment also remained under pressure after after the International Monetary Fund cut its forecast for global growth for 2013 and 2014 on Tuesday.
The IMF said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.
Sterling was fractionally higher against the euro with EUR/GBP slipping 0.09%, to hit 0.8568.
The euro weakened after European Central Bank Governing Council member Jens Weidmann said the bank could cut interest rates if economic and inflation data indicated that it was warranted.
Weidmann said a rate cut would not solve the economic problems in the euro zone and urged political leaders to continue to implement reforms at the national level.
GBP/USD hit 1.5224 during U.S. morning trade, the pair’s lowest since April 5; the pair subsequently consolidated at 1.5229, retreating 0.87%.
Cable was likely to find support at 1.5177, the low of April 1 and resistance at 1.5371, the session high.
The Office for National Statistics said the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.
Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.
Meanwhile, the minutes of the BoE’s April meeting showed that policymakers remained split over monetary policy.
Outgoing Governor Mervyn King and two other policymakers backed further monetary easing, while six voted against. The vote to leave interest rates unchanged at 0.5% was unanimous.
Sentiment also remained under pressure after after the International Monetary Fund cut its forecast for global growth for 2013 and 2014 on Tuesday.
The IMF said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.
Sterling was fractionally higher against the euro with EUR/GBP slipping 0.09%, to hit 0.8568.
The euro weakened after European Central Bank Governing Council member Jens Weidmann said the bank could cut interest rates if economic and inflation data indicated that it was warranted.
Weidmann said a rate cut would not solve the economic problems in the euro zone and urged political leaders to continue to implement reforms at the national level.