Bank of England's Tenreyro: Exchange rates continue to have important effects on export volumes

Bank of England's Silvana Tenreyro has crossed the wires but has not commented on monetary policy, rather, her speech is concentrated on trade while saying that the exchange rate continues to an import effect on the value of exports. 

Key comments:

• Simple macroeconomic estimates of effect of trade barriers probably underestimate effect of tariffs.
• Even for large economies such as the US, microeconomic effects of trade barriers are likely to be damaging to growth.
• Exchange rates continue to have important effects on export volumes.

About Silvana Tenreyro

Silvana Tenreyro was appointed to a 3-year term on the Bank of England Monetary Policy Committee from July 2017. She has been a professor of economics at the London School of Economics.

FX implications: 

The Pound is unchanged on the speech and instead, traders will take their cues from the latest developments surrounding Brexit whereby volatility remains the name of the game considering the uncertainty into the eleventh hour.