7 Aug 2013
GBP/JPY testing for below 150.00 handle
FXstreet.com (Barcelona) - GBP/JPY spiked from the low 147.61 to above 150.60 during Carneys Inflation Report.
GBP/JPY had been suffering losses from 151.40 yesterday and this move has taken it to the pivot. Carney has said the UK is in the midst of the slowest recovery on record and says GDP will not reach pre crisis peak until next year. Until the Employment target is reached, the BoE do not intend to extend their asset purchases but they are ready for more bond purchases if necessary. He said 7% is not the unemployment rate target, that is likely to be lower but the 7% rate is for appropriate stance for monetary policy. Carney has said that the BoE will link the interest rate to unemployment with 7% threshold. He also said that forward guidance does not mean rates will be low for a particularly long period of time, this depends on economic conditions.
GBP/JPY eyes BoJ
Up next we have the BoJ. Greg Gibbs, Foreign Exchange Amplifying Global FX for Asia at RBS said “In light of the weaker Japanese data in recent months, the approaching decision on the sales tax, stronger JPY and stalled Japanese equity market, the BoJ could decide to shock the market and ease further on Thursday. Alternatively BoJ Governor Kuroda may warn they are considering such a policy move in coming meetings if the economy, assets and the USD/JPY do not pick up again soon”.
GBP/JPY tirning negative again
GBP/JPY is testing the 150.00 territory to the downside and remains broadly offered for the medium term so long as it can manage a close below the pivot point and significantly 149.40 would make 148.20 vulnerable again. Resistances are the 150.45 (pivot) 150.75, 151.55 and 151.85
GBP/JPY had been suffering losses from 151.40 yesterday and this move has taken it to the pivot. Carney has said the UK is in the midst of the slowest recovery on record and says GDP will not reach pre crisis peak until next year. Until the Employment target is reached, the BoE do not intend to extend their asset purchases but they are ready for more bond purchases if necessary. He said 7% is not the unemployment rate target, that is likely to be lower but the 7% rate is for appropriate stance for monetary policy. Carney has said that the BoE will link the interest rate to unemployment with 7% threshold. He also said that forward guidance does not mean rates will be low for a particularly long period of time, this depends on economic conditions.
GBP/JPY eyes BoJ
Up next we have the BoJ. Greg Gibbs, Foreign Exchange Amplifying Global FX for Asia at RBS said “In light of the weaker Japanese data in recent months, the approaching decision on the sales tax, stronger JPY and stalled Japanese equity market, the BoJ could decide to shock the market and ease further on Thursday. Alternatively BoJ Governor Kuroda may warn they are considering such a policy move in coming meetings if the economy, assets and the USD/JPY do not pick up again soon”.
GBP/JPY tirning negative again
GBP/JPY is testing the 150.00 territory to the downside and remains broadly offered for the medium term so long as it can manage a close below the pivot point and significantly 149.40 would make 148.20 vulnerable again. Resistances are the 150.45 (pivot) 150.75, 151.55 and 151.85