Forex - Pound extends losses vs. dollar

The pound extended losses against the dollar on Wednesday, falling to more than one-week lows after unexpectedly weak U.K. jobs data, while Bank of England minutes showed that policymakers remain divided over easing.

GBP/USD hit 1.5234 during European afternoon trade, the pair’s lowest since April 5; the pair subsequently consolidated at 1.5235, dropping 0.82%.

Cable was likely to find support at 1.5177, the low of April 1 and resistance at 1.5371, the session high.

The Office for National Statistics said the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.

Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.

The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.

Meanwhile, the minutes of the BoE’s April meeting showed that policymakers remained split over monetary policy. 

Outgoing Governor Mervyn King and two other policymakers backed further monetary easing, while six voted against. The vote to leave interest rates unchanged at 0.5% was unanimous.

Sterling was lower against the euro, with EUR/GBP rising 0.44% to 0.8612.

The U.S. was to release official data on crude oil stockpiles later in the day, while the Federal Reserve was to produce its beige book.