Sterling inches down below 1.32 for second straight session

Sterling tilted lower in American trade versus the dollar for another session away from the highest since early October, following earlier data from Britain and the US, the world's largest economy. 

As of 05:34 GMT, GBP/USD shed 0.03% to 1.3186 from the opening of 1.3190, with an intraday high at 1.3212, and a one-week low at 1.3140. 

Earlier UK data showed the unemployment rate steadying in the three months ending August at 4.3%, a 1975 low, in line with expectations, while average wages rose 2.2%, same as before and besting expectations of 2.1%, while jobless claims rose 1.7 thousand, as analysts expected a 1.3K increase. 

On Tuesday, the new Bank of England Deputy Governor Dave Ramsden said ahead of a Parliamentary Committee that he won't back a trimming down of the asset purchase program until core inflation stregthens, noting that when the time comes, it's important to do it smoothly. 

Ramsden said the uncertainty surrounding Brexit negotiations could push investments to levels below what's expected by the BoE, adding that current local inflation indicators still point to economic weakness, while matching the bank's 2% target and beyond. 

He added that there's no signals yet on wage growth despite recent inflation spikes, adding that he didn't support policy tightening in the next few months as wages remain weak compared to the overflowing capacity in the economy. 

BoE Governor Mark Carney testified ahead of the Parliament as well, where he noted that the monetary policy is not a tool to achieve financial stability, and expecting inflation to peak at 3% due to inflationary pressures throughout October and November. 

Carney noted that the BoE seeks to balance inflation and economic growth overall, pointing to the pound's slump as the main reason for recent spikes in inflation, and adding that the interest rate is the most effective policy tool available to policymakers. 

Carney said policy tightening and increases in interest rates could be appropriate soon, noting that the risks faced by the housing sector are a systematic problem, while the governmental initiative to spur demand has left no noticeable impact so far on the market.  

Earlier from the US, Federal Reserve Bank of New York President William Dudley participated in a panel discussion titled "Dallas and New York as Centers of Growth" at an event jointly hosted by the Federal Reserve Bank of Dallas and the Federal Reserve Bank of New York, in New York.

Earlier US data showed housing starts and building permits fell more than expected in September, as markets look forward to the Beige Book later today, which derives its importance from being released two weeks before the Federal Open Market Committee, and lays the background for policymakers' decisions and directions in order to stimulate the economy.