Sterling Tops 1.3500, Euro Clears 1.1460; Dollar Slips

GBP/USD rose to 1.3525, its highest since April 22. The pair cleared the 1.3500 resistance level that had capped gains for two weeks. UK jobs data showed wage growth holding at 5.7%, above the Bank of England's comfort zone but not enough to force an immediate rate response. The next target is the 1.3610–1.3680 region, several traders said. A pullback could retest the 1.3440–1.3480 area as support.

EUR/USD climbed to 1.1465, recovering from a low of 1.1370 hit earlier this week. The eurozone industrial production report due later Thursday is the next test. A print below the 0.3% month-on-month forecast could stall the recovery, traders said. For more on the pair's technical levels, see the EUR/USD profile.

US weekly jobless claims are due at 8:30 a.m. ET. Analysts surveyed by Bloomberg expect a print of 220,000. A reading above that level would confirm a cooling labour market, likely pushing the dollar lower. A miss below 210,000 would reverse some of the dollar's recent losses.