Pound Rises After U.K. Jobs Report

The British pound strengthened against the other major currencies in the European session on Wednesday, after data showed that the average earnings bonus rose more-than-expected in March.

Data from the Office for National Statistics showed that the average earnings including bonus advanced 2.3 percent annually, slightly faster than the expected 2.2 percent. Excluding bonus, earnings grew 2.2 percent.

The UK unemployment rate remained unchanged at the lowest level seen since 1975.

The ILO jobless rate held steady at 4.7 percent in three months to February, in line with expectations. It has not been lower since June to August 1975.

The employment rate was 74.6 percent in three months to February, which was the joint highest since comparable records began in 1971.

The claimant count rose slightly to 2.2 percent in March from 2.1 percent in February. The number of people claiming jobseekers' allowances increased by 25,500 from prior month.

Meanwhile, the European stocks inched higher as investors put geopolitical worries aside and turned their focus to the first-quarter earnings season.

Geopolitical tensions eased somewhat after China's President Xi Jinping called for a "peaceful" resolution to tensions over North Korea, in a phone conversation with U.S. President Donald Trump.

Also, investors shrugged off political uncertainty in France after a new poll on Tuesday showed that far-left candidate Jean-Luc Melenchon's support increased by 7 percentage points in the French presidential race. In the Asian trading today, the pound held steady against its major rivals.

In the European trading, the pound rose to a 9-day high of 1.2517 against the U.S. dollar, from an early low of 1.2480. The pound may test resistance around the 1.27 region.

Against the euro and the Swiss franc, the pound advanced to near 2-month highs of 0.8478 and 1.2595 from early lows of 0.8505 and 1.2559, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.83 against the euro and 1.27 against the franc.

The pound edged up to 137.33 against the yen, from an early near 3-month low of 136.52. On the upside, 142.00 is seen as the next resistance level for the pound.

Looking ahead, U.S. import price index for March and U.S. crude oil inventories data are slated for release in the New York session.

At 10:00 am ET, the Bank of Canada's interest rate decision is due to be announced.The economists expect the bank to hold rates at 0.50 percent.

At 11:15 am ET, Bank of Canada Governor Stephen Poloz and Bank of Canada Senior Deputy Governor Carolyn Wilkins will hold a press conference on Monetary Policy Report in Ottawa.

At 10:00 am ET, Federal Reserve Bank of Dallas President Robert Kaplan will participate in moderated question-and-answer session before the Cornerstone Credit Union League Annual Meeting in Fort Worth, Texas.

At 2:00 pm ET, U.S. monthly Federal budget balance is set to be published.