GBP/USD has locked gains originated after the release of the solid UK labor market data

The street is convinced that US headline inflation would soften dramatically due to consistently falling energy prices, however, sheer stubbornness in anticipated in core inflation figures as the demand for durables has remained strong and the service sector is still resilient.The impact of soft inflation numbers would propel the need for a skip in the policy-tightening spell by the Federal Reserve (Fed). Meanwhile, solid United Kingdom Employment data are demonstrating resilience in the economy.

The Claimant Count Change (May) saw a massive decline of 13.6K while the street was anticipating a decline of 9.6K. In the past month, Claimant Count Change soared by 23.4K. Three-month Unemployment Rate (April) slipped to 3.8% vs. the estimates of 4.0% and the former figure of 3.9%. Apart from that, the economic indicator which was crucial for investors was the Average Earnings excluding bonuses data. The economic data soared to 6.5% against the consensus and the former release of 6.1%. UK households equipped with higher earnings for disposal are going to accelerate the overall demand, which eventually will heat up inflationary pressures further. More interest rate hikes by the Bank of England (BoE) are highly expected as the battle against persistent inflation is far from over.