Sterling firms as focus moves to Angela Merkel and Theresa May

The pound climbed from a one-week low as a report showed the UK unemployment rate fell below 5% for the first time since 2005.

Sterling was further boosted by a Bank of England survey which showed that despite an increase in business uncertainty after the June 23 referendum, firms sought to maintain “business as usual”.

Sterling gained versus all of its 16 major peers as data showed the UK jobless rate, as measured by International Labour Organisation standards, dropped to 4.9% in the three months through May. Separate wage data showed average weekly earnings unexpectedly fell.