BRUSSELS (dpa-AFX) - The pound moved up against the other major currencies in European morning trading on Wednesday, as data showed that the U.K. unemployment rate fell to the lowest level in more than 10 years in May and a Bank of England report showed that there was little evidence of a sharp general slowing in economic activity following the Brexit vote.
Data from the Office for National Statistics showed that the unemployment rate fell to 4.9 percent in three months to May from 5.6 percent a year earlier.
The last time it was lower was for July to September 2005. The expected rate was 5 percent.
There were 1.65 million unemployed people, 54,000 fewer than for the 3 months to February 2016, the ONS said.
At the same time, the employment rate reached 74.4 percent, the highest since comparable records began in 1971.
The claimant count held steady at 2.2 percent in June, in line with expectations. The number of people claiming unemployment benefits increased marginally by 400 from May, while it was expected to increase by 4,000.
In its monthly survey, the central bank's regional agents said business uncertainty 'had risen markedly' but there was 'no clear evidence' that a sharp downturn is likely to hit the U.K. economy after the Brexit vote.
'A majority of firms spoken with did not expect a near-term impact from the result on their investment or staff hiring plans. But around a third of contacts thought there would be some negative impact on those plans over the next 12 months,' the BoE said.
As yet, there was no clear evidence of a sharp general slowing in activity,' it added.
The currency was also buoyed by rising appetite, as European shares rose amid solid corporate earnings results.
The pound was modestly lower against its major rivals, except the yen, in Asian deals.
In European trading, the pound climbed to 1.3007 against the Swiss franc, following a decline to 1.2890 at 9:00 pm ET. On the upside, the pound may challenge resistance around the 1.32 mark.
The pound advanced 1.3167 against the greenback, reversing from its 8-day low of 1.3065 hit in the previous session. The pound is seen finding resistance around the 1.33 region.
The pound, having fallen to 0.8424 against the euro at 9:15 pm ET, reversed direction and climbed to 0.8358. The next possible resistance for the pound may be located around the 0.82 area.
Data from the European Central Bank showed that the euro area current account surplus declined to a 3-month low in May.
The current account surplus fell to EUR 30.8 billion in May from 36.4 billion in April. This was the lowest level since February.
Bouncing off from an early 5-day low of 138.34 against the Japanese yen, the pound rose to 140.19. If the pound-yen pair extends rise, 144.00 is likely seen as its next resistance level.
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