• GBP/USD drifts closer to 1.3400 on Tuesday from 1.3440 highs on Monday.
• UK Unemployment Rate increased against expectations, and wage inflation grew in March.
• A frail hope of a peace deal in Iran is keeping the US Dollar subdued on Tuesday.

The British Pound (GBP) drifts further from Monday’s highs near 1.3440 against the US Dollar (USD) on Tuesday, reaching session lows a few pips above 1.3400 at the time of writing. UK unemployment figures confirmed that the labour market deteriorated in March and added negative pressure on the Sterling.

Data released by the UK Office for National Statistics on Tuesday revealed that the Unemployment Rate grew to 5% last month, against market expectations of a steady 4.9% reading. National Statistics also reported a 26.5K increase in jobless benefit claimants in April, from 4.9K in March.

Beyond that, Average Earnings Including Bonus accelerated to a 4.1% yearly rate in the three months to March, increasing inflationary pressures in the UK economy, and complicating the Bank of England’s (BoE) monetary policy-setting activity. 

The uncertain political scenario in the UK remains another source of pressure for the British Pound, with Prime Minister Keir Starmer fighting for survival after the Labour Party’s defeat in the local elections. Great Manchester mayor Andy Burnham, the best-positioned candidate to replace him, has been easing investors' concerns about fiscal slippage, assuring his commitment to abide by the government’s borrowing limits.

In the US, the calendar is thin during the first half of the week, but growing hopes of a peace deal in Iran have pushed Oil prices and US yields down from recent highs, which is weighing on the safe-haven US Dollar. US President Trump said on Monday that he paused an attack amid advances on a nuclear deal, which keeps hopes of a swift end to the war alive.