GBP/USD resumed its upward trend today even though there was some disappointing data on the UK economy. Unemployment levels increased unexpectedly in June by rising to 5.6% up from 5.5%. The claimant count also increased on the month. Average earnings rose strongly by 3.2% p.a. up to May.
This was up from 2.7% the previous month but was just short of the consensus forecast for a 3.3% rise. This may suggest that the slack in the UK labor market has reduced and that employment growth may be levelling out.
The pound struggled against a stronger dollar amid the mixed data. Sterling easily pushed higher on euro however. This allowed EUR/GBP to slip back down below 0.70 for the first time this month.
Greece’s latest bailout deal and possible future in the Eurozone hangs in the balance tonight. The Greek parliament will vote this evening on the bailout latest offer from other EU member states. Tsipras is expected to see a strong revolt from his own MP many of whom are to the far left of politics. Support from the more moderate parties will be needed but the outcome is still far from certain. Watch for increased volatility in the euro this week.
GBP/JPY also forged higher moving back to 193.65. The Bank of Japan’s meeting proved uneventful and did little to support the yen. GBP/JPY has seen six days of strong rises and is poised to test recent highs again at the 196 resistance.