The pound is not greatly affected by UK employment data, and the market is focusing on the decision of the Bank of England.

As investors await the policy decision of the Bank of England later today, the pound has reacted with little enthusiasm to the latest UK employment data. The unemployment rate for the three months to April fell from 5.0% in the previous quarter to 4.9%. Economists had previously forecasted it to be 5.0%. Meanwhile, average earnings excluding bonuses increased by 3.4%, higher than the expected 3.2%. The Bank of England will announce its decision at 1100 Greenwich Mean Time, with the general expectation that interest rates will remain unchanged. The focus is on any guidance regarding the possibility of a rate hike later this year. The pound rose by 0.2% against the dollar, to $1.3313, higher than the pre-data release level of $1.3298. However, the euro remained stable against the pound at 0.8560, almost unchanged from before the data release.