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20 Jun 2013
GBP/JPY higher on data
FXstreet.com (London) - GBP/JPY spiked from 149.78 on the FOMC comments to reach 151.74 before some minor resistance.
GBP/JPY higher on data
On two counts of data, the pair has continued higher to oscillate between 151.55 acting as support and 151.88, the high in London. Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. The GBP/JPY has been one of the worst performers since the release in typical ‘risk-off’ fashion.
The pair was even able to extend yet more gains on the UK high-street releases. Retails sales came in much better than expected this morning, at 1.9% vrs 0.2% expected (YoY) for May and 2.1% vrs 0.8% expected month on month. These numbers will have benefitted from the 4% month on month plunge in food store sales, warmer weather and corporate result for May, with a push higher in the services PMI rebound story. Sterling jumped much higher to eventually find offers against 1.5473 and currently the pair are heading south again, capping GBP/JPY here for the time being. Key support comes in Feb highs 147.80 while MA’s longer term offer an upside bias and targets 153.70 daily double top.
GBP/JPY higher on data
On two counts of data, the pair has continued higher to oscillate between 151.55 acting as support and 151.88, the high in London. Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. The GBP/JPY has been one of the worst performers since the release in typical ‘risk-off’ fashion.
The pair was even able to extend yet more gains on the UK high-street releases. Retails sales came in much better than expected this morning, at 1.9% vrs 0.2% expected (YoY) for May and 2.1% vrs 0.8% expected month on month. These numbers will have benefitted from the 4% month on month plunge in food store sales, warmer weather and corporate result for May, with a push higher in the services PMI rebound story. Sterling jumped much higher to eventually find offers against 1.5473 and currently the pair are heading south again, capping GBP/JPY here for the time being. Key support comes in Feb highs 147.80 while MA’s longer term offer an upside bias and targets 153.70 daily double top.