GBP jumped on labor data
GBP/USD has reached a weekly high of $1.6060 following the release of the UK employment data, but the pound's rally was capped by sell orders clustered in the $1.6050/80 area. Cable has returned back into the $1.6020 area as of writing.
Data showed UK claimant count change dropped by 41.7K vs. 25K expected. What is more, the previous reading was revised from -32.6K to -41.6K. Unemployment rate remained unchanged at 7.7%.
“Achieving the 7% target is still going to be a challenge for UK,” strategists at Morgan Stanley say. “Hence, we would expect any pound gains to remain limited.”
Chart. H4 GBP/USD