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


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. 

 

 

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