Sterling edged higher on Monday with moderate gains too in Asia overnight ahead of this morning’s release by the ONS of March’s unemployment rate and average earnings at 7.00am. These have since been released: claimant count 7.2%, unemployment rate 4.8% (both better than consensus), average earnings 4% (below consensus). As a result, Sterling has held onto these gains. Tomorrow’s latest UK inflation data for April will likely influence any retest of the highs seen this year for Sterling.

Broad based US Dollar weakness persists as global stocks/indices recover from last week’s losses. The next due data from the US is on Friday, these being the latest PMI readings for May.

A stronger technical close above €/$ 1.2100 ahead of the latest Eurozone GDP data suggests further gains are possible. The Euro is just moderately softer against GBP however.

Interbank levels:
GBP/USD 1.4170
GBP/EUR 1.1544
EUR/USD 1.2170