The British Pound edged higher on Thursday, recovering slightly after falling to a two-month low in the previous session, as stronger-than-expected UK employment figures helped support sentiment.

Sterling was up 0.17% at $1.332 at the time of writing, following a 1% drop on Wednesday after US Federal Reserve officials indicated that interest rate increases could still be on the table this year.

In addition, the Euro rose 0.05% against the Pound at 86.54 pence, suggesting that much of Sterling’s gains versus the Dollar reflected a technical rebound from the prior day’s sharp decline.

UK labour market data released on Thursday showed the unemployment rate easing to 4.9% in the three months to April, down from 5% previously.

Payroll employment also increased slightly, rising by 2,000 in May, according to the figures. Meanwhile, annual wage growth excluding bonuses held steady at 3.4%, coming in above economists’ expectations of 3.2%.

Wage growth will be closely monitored by the Bank of England, which is widely expected to keep interest rates unchanged at 3.75% later on Thursday, Reuters news agency reports.

The stronger-than-expected wage growth is likely to draw attention from hawkish members of the Monetary Policy Committee, although analysts expect the Bank of England to avoid adopting as forceful a stance as the Federal Reserve did the night before.

The previously reported sharp fall of 100,000 in payrolled employees in April has been revised, yet it still shows a significant decline of 53,000.

“On the face of it, the latest ​UK ⁠jobs report doesn’t look so bad,” according to James Smith, developed markets economist at ING.

“But the details still look dovish for the Bank of England. ⁠And ​the report is another reminder that the ​case for higher rates is far from the clear cut.”