Cable turned back in to 1.6360 after briefly touching the 1.6400 immediately after the U.K. labor market data. The U.K. claimant account was not as bad as feared, but still showed a 23.8k rise in unemployment and the May ILO rate surged to 7.6%. The pace of the labor market decline has slowed, but the break down showed that the U.K. economy is still suffering amid the worst economic down turn since the 1930s. From here, equity markets will dominate, with focus on today's U.S. data and forthcoming earnings reports. GBP remains highly sensitive to global risk appetite and further equity market strength will see levels above 1.6400 come back in to play. In the meantime, bids at 1.6320 and 1.6300 should support as the market awaits the U.S. open.
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