Investing.com - The pound trimmed gains against the U.S. dollar on Wednesday, after the release of mixed U.K. data, while sentiment on the greenback also remained fragile ahead of the Federal Reserve’s highly-anticipated interest rate decision.
GBP/USD pulled back from 1.2797 during European morning trade, the pair’s highest since June 9; the pair subsequently consolidated at 1.2754, steady for the day.
Cable was likely to find support at 1.2639, Tuesday’s low and resistance at 1.2853, the high of May 29.
The U.K. Office for National Statistics said that unemployment rate was unchanged at 4.6% in April, in line with expectations and at its lowest level since 1975.
The claimant count increased by 7,300 in May, compared to expectations for a gain of 20,300 people.
The report also showed that the average earnings index rose by 2.1% in the three months to April, missing forecasts for a 2.4% increase.
Excluding bonuses, wages rose by just 1.7% in the three months to April, compared to expectations for a 2.0% gain.
Meanwhile, political uncertainty persisted in the U.K., with Prime Minister Theresa May facing calls to soften her stance on Brexit days before negotiations on leaving the EU begin.
May was set to resume talks with Northern Ireland's Democratic Unionist Party (DUP) on a deal to secure their support in parliament after the Prime Minister failed to win an outright majority in last week's election.
French President Emmanuel Macron told British Prime Minister Theresa May that the U.K. is welcome to remain in the European Union if it changes its mind.
In the U.S., the Fed was widely expected to raise interest rates by 25 basis points from 1.00% to 1.25% later Wednesday.
Market participants were especially awaiting Fed Chair Janet Yellen’s comments following the decision for indications on the future pace of rate hikes.
Sterling was steady against the euro, with EUR/GBP at 0.8791.