Relatively healthy labor market numbers and more specifically the decline in the unemployment rate drove the GBP higher versus the USD and EUR. EUR/GBP dropped to its lowest level since January 2013 and is now within 20 pips of its 17-month low. Jobless claims fell by 27k in the month of May, driving the unemployment rate from 6.8% down to 6.6%, a 5 year low. While GBP continues to outperform thanks to the improvements in the labor market and the economy overall, without a rise in wage growth, the Bank of England will be in no rush to raise interest rates. Daily demand held at 1.6745 and I am expecting GBPUSD to hit 1.6882 level before Friday.
