We saw the UK employment data and the NIESR GDP estimate leaked today at 13:00 GMT ahead of tomorrow's scheduled release times. The employment figures showed that the number of jobless claims rose by 57.1K versus expectations of 85.0K. However, the unemployment rate rising to 7.1% from 6.7% weighed on the pound. Also, the GDP estimate saw last month's contraction revised to -1.7% from 1.5%, which was the reading for April. Although, we saw an improvement, it was from a worse than previously though level which also caused concern. Nevertheless, the pound has held onto most of its gains that were generated by the better than expected industrial production figures that showed that the contraction in manufacturing slowed to 0.1% , which was the lowest in over a year. If tomorrow's queterly inflation report shows that the BoE is becoming less concerned over the possibility of deflation, then we could see sterling continue its bullish trend wuth a possible test of 1.5500. However, giving that he central bank expanded it bond repurchase program, there is some skepticism.

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John Rivera is the author of Market Brief, Top FX Headlines, and Forex Trading Weekly Forecast on DailyFX.com.