GBP/USD keeps the red below mid-1.2900s, 2-week lows post-UK jobs data

   •  The latest Brexit headlines prompt some fresh selling around the British Pound.
   •  Mixed UK employment details fail to impress the bulls or provide any impetus.

The GBP/USD pair held on to its weaker tone near two-week lows and had a rather muted reaction to mixed UK monthly employment details.

The pair added to the overnight weakness and lost some additional ground during the early European session on Tuesday after reports suggesting that the UK PM Theresa May will not sign up for a permanent customs union, a key demand by the opposition Labour party in the long cross-party talks.

On the macroeconomic data front, the UK unemployment rate unexpectedly ticked lower to 3.8% but was largely offset by the disappointing release of wage data, showing that average earnings growth including bonus decelerated to 3.2% during the three months to March from 3.5% previous.

Adding to the disappointment, the number of people claiming unemployment-related benefits also rose more than expected to 24.7K in April, while average earnings excluding bonus matched estimates and came in to show a 3.3% growth as compared to 3.4% rise recorded previously.

However, the not so disappointing data was overshadowed by prolonged Brexit uncertainties and did little to provide any meaningful impetus to the British Pound or assist the pair to stage any meaningful bounce.

Technical levels to watch