Investing.com - Sterling remained lower against the broadly stronger dollar on Wednesday despite data showing that U.K. jobless claims fell in December and wages rose, as investors continued to assess Prime Minister Theresa May’s Brexit plans.
GBP/USD was trading at 1.2318, off 0.72% for the day following the release of the jobs data.
The pair ended the previous session with gains of 3.03%, the biggest one-day percentage gain since January 2009.
The pound surged after May confirmed Tuesday that Britain will be leaving the single market when it exits the European Union, but would seek maximum access to it through a new trade agreement.
May also said the final Brexit deal will be put to parliament for a vote.
The Office for National Statistics said Wednesday that the claimant count fell by 10,100 in December, compared to expectations for an increase of 5,000 people.
The unemployment rate remained unchanged at an eleven-year low of 4.8%, in line with forecasts.
But the number of people employed fell by 9,000 to just over 31.8 million, the report said. It was the second consecutive monthly decline, pointing to caution among employers in the wake of the Brexit vote.
Average weekly earnings rose from 2.6% to 2.8%, compared to expectations of a figure of 2.6%.
Excluding bonuses, earnings rose by 2.7% year-on-year, the strongest increase since August 2015, compared to expectations for a 2.6% rise.
Wages are not expected to rise in line with inflation in 2017, raising doubts over whether consumer spending will slow.
In November the Bank of England forecast that inflation would rise above 2.7% by the end of 2017 as the weakening pound pushes up import prices.
On Monday, BoE Governor Mark Carney said Britain's recovery was increasingly reliant on consumer spending, making it vulnerable to the risk of a decline in spending power.
The pound was also weaker against the euro, with EUR/GBP up 0.56% at 0.8676.