GBPUSD – Reasons to expect a dovish BoE USDJPY – Signaling another pullback
The Cable tumbled to its lowest valuation since early September 2013 at 1.5790 late last week following additional indications of an economic slowdown in the UK. The week started positively when the Manufacturing PMI surged to its highest level since July (53.2) and was followed by the Construction PMI hitting 61.4, but things went downhill from there. The Services PMI – the UK’s
Widespread US dollar strength following the Fed concluding QE, GDP surpassing expectations and impressive Initial Jobless Claims led to this pair climbing as high as 115.201 on Friday. The subdued reaction to the US economy only adding 214,000 jobs to its payroll in October encouraged the rally to stall, while the comment from Janet Yellen regarding the need for “supportive policy to remain” on Friday encouraged investors to close positions.