The British pound weakened against the other major currencies in the early European session on Wednesday, after data showed that the U.K. unemployment rate rose unexpectedly in the second quarter and total wage growth slowed.

Data from the Office for National Statistics showed that U.K. unemployment rate rose by 5.6 percent, compared to 5.5 percent in three months to March, but down notably from 6.3 percent in the same period of last year.

There were 1.85 million unemployed people in April to June, 25,000 more than in January to March period.

The number of people claiming unemployment benefits declined by 4,900 in July from June, while it was expected to rise by 1,000. The claimant count rate held steady at 2.3 percent as expected by economists.

Average earnings including bonuses increased 2.4 percent in the second quarter, down from 3.2 percent the previous month. Excluding bonus, pay climbed 2.8 percent.

Meanwhile, the European shares also fell, as concerns about China's weakness show little sign of abating. China stunned the world's financial markets today by allowing the yuan to fall sharply for the second day running, stirring concerns that the world's second-largest economy is in much worse shape than what recent economic readings had indicated.

The People's Bank of China set the yuan fixing at 6.3306 against the U.S. dollar today, 1.6 percent weaker than the previous day's level, threatening to further strain Washington's relations with Beijing.

In the Asian trading today, the pound held steady against its major rivals.

In the European trading now, the pound fell to more than a 4-week low of 0.7170 against the pound, from an early high of 0.7083. If the pound extends its downtrend, it is likely to find support around the 0.72 area.

Against the U.S. dollar and the Swiss franc, the pound dropped to 2-day lows of 1.5535 and 1.5255 from early highs of 1.5605 and 1.5401, respectively. On the downside, 1.53 against the greenback and 1.50 against the Swiss franc are seen as the next support level for the pound.

Puliing away from an early 6-day high of 195.03 against the yen, the pound slipped to a 2-day low of 193.39. The pound may test support near the 190.00 region.

Looking ahead, U.S. monthly budget for July is set to be announced in the New York session.

At 8:30 am ET, Federal Reserve Bank of New York President William Dudley is expected to speak before the Rochester Business Alliance on the local economy and the benefits of workforce development in Rochester, New York, U.S.

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