The GBP/USD pair is on track to reach a new high, surpassing its previous peak by fifteen months.
The British pound sterling remains resilient against the US dollar, with the current GBP/USD exchange rate standing at 1.2931.
Despite the UK economy adding 102,000 jobs in June, the figure falls short of May's numbers and lags behind market expectations. The unemployment rate has also risen from 3.8% to 4.0%. Additionally, the claimant count change has increased by 25.7 thousand, following a previous decline of 22.5 thousand. On a positive note, earnings for the three-month period ending in May have risen by 7.3%, surpassing the previous value of 7.1% (which was subsequently revised upwards from 7.1%).
The Bank of England (BoE) is striving for a weaker employment sector, as it seeks to combat inflationary pressure. However, the central bank's efforts in this regard have not unfolded according to plan.
The Organization for Economic Cooperation and Development (OECD) highlights that the UK is the only major economy experiencing a continued rise in inflation. Consequently, the BoE is currently struggling to contain inflation and may need to raise interest rates further.
The anticipation of tighter monetary policies in the UK serves as the primary catalyst for the ongoing GBP rally.