Last month, a surprising fall of 109,000 in the payrolls of the United Kingdom in May opened the discussion about whether the Bank of England should accelerate the relief, says the FX analyst of ING, Francesco Pesole.
Level 0.870 should function as a stronger resistance to
“That figure was massively reviewed to only -25,000. June added another 41,000 in losses of employment, confirming a clear weakening pattern, but May’s great revisions should remove some pressure from the BOE.”
“Salary growth also remains too high for the taste of the BOE, although in annual terms adjusted to 3 months, the salary of the private sector are increasing 3.6%, which is better than the interannual figures indicate and is lower than we saw much of last year.”
“The reaction of the EUR/GBP to the data has been modestly negative, but since the bar for a new DOVISH assessment of the BOE is now higher, the level 0.870 should function as a stronger resistance.”
Source: Fx Street
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