7 Sep 2015
GBP/JPY making comeback to 181.00 after big drop
FXStreet (Guatemala) - GBP/JPY has dropped significantly in a risk-off environment to start the week ahead of some key data inputs and the BoE.
GBP/JPY dropped from 181.19 highs to mark a low of 180.35 so far. USD/JPY bears are starting to make some ground as well with the major now changing hands in the 118.80's again. GBP/USD minore recovery attempts are capped at the hourly 50 SMA.
The week ahead is about the pound for the cross in respect of data and the Yen will continue to benefit in a risk-off environment. We will see July Industrial Production on the 9th with risks to the downside of this release and then we have July Construction on the 11th.
However, key for the week will be the Bank of England meeting on the 10th. Analysts at TD Securities explained that there’s likely not going to be any real excitement out of Thursday’s policy decision but they also said, "With the minutes and vote published alongside the rate decision, there will be plenty for markets to chew on. We’ll be particularly interested in any discussions relating to the recent market volatility and how it might feed through to medium-term UK inflation, and expect the 8-1 vote from August to hold, with McCafferty the sole dissent."
GBP/JPY dropped from 181.19 highs to mark a low of 180.35 so far. USD/JPY bears are starting to make some ground as well with the major now changing hands in the 118.80's again. GBP/USD minore recovery attempts are capped at the hourly 50 SMA.
The week ahead is about the pound for the cross in respect of data and the Yen will continue to benefit in a risk-off environment. We will see July Industrial Production on the 9th with risks to the downside of this release and then we have July Construction on the 11th.
However, key for the week will be the Bank of England meeting on the 10th. Analysts at TD Securities explained that there’s likely not going to be any real excitement out of Thursday’s policy decision but they also said, "With the minutes and vote published alongside the rate decision, there will be plenty for markets to chew on. We’ll be particularly interested in any discussions relating to the recent market volatility and how it might feed through to medium-term UK inflation, and expect the 8-1 vote from August to hold, with McCafferty the sole dissent."