FX.co ★ Pound Remains Weak as UK Jobs Data, BoE Decision Loom

The British pound held steady around $1.33, hovering near its weakest level since April 7, as investors digested fresh UK labor market data ahead of the Bank of England’s policy decision and the Makerfield by-election results, both seen as potential influences on Labour’s leadership and broader economic agenda. UK unemployment unexpectedly declined to 4.9% in the three months to April, slightly below the 5.0% forecast, while overall wage growth accelerated to 4.4%, beating expectations of 4.0%. In contrast, private-sector earnings rose in line with estimates at 2.9%, easing from 3.0% previously, a development likely to reassure BoE officials that wage-driven inflationary pressures remain contained. Later today, the Bank of England is widely expected to keep interest rates unchanged, though any signs of dissent among policymakers could be interpreted as a hawkish tilt. The decision comes on the heels of the Federal Reserve’s move to leave rates on hold, even as nine of its 19 officials now project at least one rate increase this year.