Investing.com - The pound ticked lower on Wednesday after data showing that the U.K. unemployment rate unexpectedly rose in May, while salary growth continued to pick up, but at a slightly slower than expected rate.
GBP/USD slipped 0.15% to 1.5612 from around 1.5653 ahead of the report.
The Office for National Statistics said the jobless rate ticked up to 5.6% in the three months to May from 5.5% in the previous three month period. Economist had expected an unchanged reading.
It was the first increase in the unemployment rate since early 2013 as the number of people in the labor force fell by 67,000, due in large part to declines in the number of people in part-time work.
The number of people claiming unemployment benefits rose by 7,000, compared to expectations for a decline of 8,800.
Pay growth picked up in the three months to May, with average earnings including bonuses rising 3.2% from a year earlier, up from 2.7% in April. It was the fastest increase since April 2010, but was just short of forecasts of 3.3%.
Excluding bonuses, hourly earnings rose 2.8% on a year-over-year basis, up from 2.7% previously, but below forecasts for 3.0%. It was still the biggest increase in six years the ONS said.
Sterling rallied on Tuesday after Bank of England Governor Mark Carney said the time for interest rate hikes is approaching. The comments came during testimony to MP’s on the bank’s quarterly inflation report.
The pound was lower against the euro, with EUR/GBP up 0.26% to 0.7057 from 0.7037 earlier.
The euro remained under pressure as investors waited to see if the Greek parliament would support harsh austerity measures demanded by the country’s creditors in order to secure a third bailout deal.
Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.
On Tuesday the International Monetary Fund warned that Greece will need far more debt relief than is currently on offer from its creditors, adding to the fierce debate in the euro zone about the draconian conditions attached to bailout deal.