UK wages rose 5.3% in three months ending April, below estimates of 5.5%, and down from 5.6% in the previous reading. 

UK jobless claims rose to 33.1 thousand in May, missing estimates of 9.5 thousand, and compared to April's 21.2 thousand drop.

UK unemployment rose to 4.6% in the three months ending April, the second increase in a row, up from 4.5% in the previous reading. 

Sterling fell in European trade on Tuesday against a basket of major rivals, resuming losses against the dollar and backing away from a three-year peak on profit-taking. 

The US dollar gained ground amid progress in US-China trade talks with negotiations extended for another day in London.

The Bank of England is facing divisions on monetary policy easing, hurting the odds of a rate cut in June, with traders awaiting fresh UK labor data this week to gather more clues.

The Price

GBP/USD fell 0.25% to $1.3520, with a session-high at $1.3564.

The pound rose 0.2% on Monday against the dollar after a 0.35% drop on Friday on profit-taking away from a three-year high at $1.3617.

US Dollar

The US dollar rose 0.25% on Tuesday and approached a two-week high against a basket of major rivals.

It comes amid concerns about an economic slowdown in the US and China receded with both sides conducting important talks in London for a second day.

UK Rates

The recent vote in the BOE showed a clear division between members on the path ahead for interest rates, with current odds of a 0.25% rate cut in June settling below 30%.

Now traders await important UK jobless claims, unemployment, and wages data for April to gather more clues.