GBP/USD shoots above 1.2550 on upbeat UK Employment data, US CPI in focus

Apart from that, Average Earnings excluding bonuses have soared to 6.5% against the consensus and the former release of 6.1%. Investors should note that higher earnings have remained a major concern for the Bank of England (BoE) while battling against stubborn inflation.

UK firms have been facing issues of labor shortages and are offsetting the same through higher payouts. Brexit and early retirements by individuals have remained major catalysts behind labor shortages.

Considering the resilience in the UK Employment data, BoE Governor Andrew Bailey would definitely go for further policy-tightening by 25 basis points (bps) to 4.75%.

Meanwhile, S&P500 futures added decent gains in the Asian session. US equities also found significant interest from the market participants on Monday as investors are hoping that the Federal Reserve (Fed) would skip raising interest rates this time. However, hawkish guidance cannot be ruled out as the inflation rate is still more than double the desired rate of 2%.

Before the Fed policy, the United States Consumer Price Index (CPI) data will be keenly watched. Monthly headline inflation (May) is expected to accelerate at a pace of 0.2%, slower than the 0.4% pace being recorded for April. However, the monthly pace in core CPI that excludes oil and food prices is seen steady at 0.4%.