MUFG: UK Labour Weakness May Temper BoE Hikes
MUFG analyst Derek Halpenny notes growing signs of UK labour market weakness, including a sharp drop in HMRC jobs data and elevated HR1 redundancy notifications, which could influence the Bank of England's rate path.
MUFG's Derek Halpenny highlights that recent data from the UK labour market shows increasing signs of weakness. The HMRC payroll jobs figure has dropped sharply, while HR1 redundancy notifications remain elevated. These indicators suggest softening labour conditions, which could reduce the pressure on the Bank of England to continue hiking rates.
The analyst's comments come amid a broader view that the UK economy is losing momentum. Labour market softness is a key factor that could temper the BoE's tightening cycle, potentially capping further gains in the British pound.
Source: FXStreet Forex News