The Pound Sterling gained ground on Tuesday after fresh UK labour market figures beat expectations for the three months to June.

Data from the Office for National Statistics (ONS) showed the economy added 239,000 jobs in Q2, far outpacing the 134,000 added in the previous three-month period. This rebound comes after earlier signs of hiring hesitation, partly due to higher employer social security contributions, which rose to 15%. 

The ILO Unemployment Rate held steady at 4.7%, in line with forecasts. July’s Claimant Count Change fell by 6,200, defying expectations for a sharp rise of 20,800.

Wage growth showed modest signs of cooling. Regular pay (excluding bonuses) rose 5% year-on-year, matching forecasts, while total pay (including bonuses) increased 4.6%, slightly below the 4.7% expected and down from 5% previously.

The strong jobs data supports the Bank of England’s preference for a “gradual and careful” approach to monetary easing. Last week, the BoE lowered interest rates by 25 basis points to 4%, with a narrow majority in favour.

Looking ahead, traders are eyeing Thursday’s release of the UK’s preliminary Q2 GDP and June factory output data, along with upcoming US inflation figures, as the next potential market movers.