Investing.com - The pound pared back gains against the dollar on Wednesday after the latest U.K. jobs report showed that while the unemployment rate ticked down to the lowest level since early 2008 the rate of wage growth slowed.
GBP/USD was last at 1.5140 from around 1.5167 ahead of the report.
The Office for National Statistics said the unemployment rate fell to 5.3% in the three months to September, the lowest since the three months to April 2008. Economists had expected the jobless rate to remain unchanged at 5.4%.
The number of people claiming unemployment benefits rose by 3,300 in October, compared to expectations for an increase of 1,500.
Wage growth, including bonuses rose by 3.0% in the three months to September, the ONS said, matching the increase in the previous three month period and below forecasts for rise of 3.2%.
Excluding bonuses, wages rose by 2.5%, below expectations for 2.7% after a 2.8% increase in the three months to August.
The Bank of England has said that it is monitoring wage growth as it considers when to start raising interest rates for the first time since 2007.
The greenback remained broadly stronger after last week’s strong U.S. employment report paved the way for the Federal Reserve to raise interest rates at its next meeting in December.
The unexpectedly strong report underlined the diverging monetary policy expectations between the Fed and other world central banks.
Sterling was little changed against the euro, with EUR/GBP at 0.7099 from around 0.7081 ahead of the jobs data.
The single currency has come under pressure in recent sessions amid mounting expectations that the European Central Bank will take further action to shore up economic and price growth in the euro zone before the years end.
The single currency also remained on the back foot as the euro zone crisis came back into focus after Portugal’s government fell late Tuesday and as Greece struggled to meet creditor’s demands.
Portugal’s government collapsed less than two weeks after taking power, after left wing opponents rejected its policy proposals in parliament amid anger over widespread austerity measures.
Meanwhile, Athens has been given one week to push through reforms on non-performing loans before it can access its next €2 billion aid tranche.