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20 Mar 2013
Forex: GBP/JPY retraces morning decline following BoE minutes
FXstreet.com (Barcelona) - GBP/JPY has bounced from its London session low at 143.30 to trade well above 144 following this morning´s BoE minutes.
The BoE minutes saw Governor King defeated 6-3 in a vote to increase the UK´s QE package to GBP400 bln, with objectors stating “credibility concerns” as being the key motivation for their decision. They stated that further easing could lead to unwarranted GBP weakness. As such, asset purchases remain at GBP375 bln. Elsewhere, ILO unemployment remained at 7.8% while average earnings disappointed expectations at 1.2%/1.5% and Claimant Counts beat expectations at -1.5k/-5k despite remaining in negative territory. The reaction for GBP/JPY has been for spot to retrace its pre-data decline to see spot surge above 144 to where it currently trades at 144.32, the daily high so far. Hourly RSI is at 61 while the areas of 144.40-60 represent near term areas of resistance ahead.
The BoE minutes saw Governor King defeated 6-3 in a vote to increase the UK´s QE package to GBP400 bln, with objectors stating “credibility concerns” as being the key motivation for their decision. They stated that further easing could lead to unwarranted GBP weakness. As such, asset purchases remain at GBP375 bln. Elsewhere, ILO unemployment remained at 7.8% while average earnings disappointed expectations at 1.2%/1.5% and Claimant Counts beat expectations at -1.5k/-5k despite remaining in negative territory. The reaction for GBP/JPY has been for spot to retrace its pre-data decline to see spot surge above 144 to where it currently trades at 144.32, the daily high so far. Hourly RSI is at 61 while the areas of 144.40-60 represent near term areas of resistance ahead.