BOE’s Tenreyro: UK labor market is not tightening further, GBP/USD drops 20-pips

Dhwani Mehta FXStreet

The Bank of England (BOE) policymaker Silvana Tenreyro said on Friday that “by all measures UK labor market is very tight”.

Further Comments:

UK labor market is not tightening further.

Very hard to think this is the peak of the labor market.

A reduction of uncertainty after the election and fiscal stimulus could boost the UK demand.

Expects pay growth to be sustained in early part of 2020.

Expects further below-target inflation.

Her inclination is toward a cut in rates if downside risks emerge.

Risks are tilted to the downside.

On the dovish comments from the BOE policymaker, the pound came under fresh selling pressure. The GBP/USD pair quickly eroded 20-pips to now trade near 1.3065 region, almost unchanged on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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