GBPUSD – Rea­sons to ex­pect a dovish BoE USDJPY – Sig­nal­ing another pull­back

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

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