2 Sep 2013
GBP/JPY steady
FXstreet.com (London) - GBP/JPY is printing a high of 154.94 and is steady at the support of 154.35/45 after the overnight gap on the charts.
GBP has been on the bid since the positive data in Manufacturing output. “Today's UK manufacturing PMI was stronger than expected. The output sub-index gives an estimate of 4.5% y/y growth in the official ONS output data. Despite this good reading, we see downside risks to this week's UK services PMI survey as it has risen strongly to high levels. Away from the UK, Friday's payroll report presents the main event for the week. In fact, it has the potential to set the tone for the next couple of months. The report should only affect the pace of any eventual announcement on tapering rather than the start date which is still expected to be September. We would expect a stronger number to play USD positive, with only a print sub 100k likely to see the USD weaken”. “A near-term reduction in Syria tensions as we now await the US Congressional vote appeared to help lift European equities this morning and simultaneously knock the…JPY lower”. – Stephen Gallo, European Head of FX Strategy. Meanwhile, attention will be turning towards the dollar again this week with the US payrolls are in focus and will be make or break for September tapering, according to Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities, effecting the cross. “…with 100k being the key threshold.”
GBP/JPY levels
GBP/JPY is steady between USD/JPY and the sterling on the bid Overnight, with a slight bias towards the dollar. The 20 DMA is 151.80, the 50 DMA is 151.40 and the 200 DMA is 146.80. RSI (14) is currently printing 68.40 while supports are ascending from 150.50 151.50 151.80 152.45 153.20 153.95. Spot is currently 154.40 with resistances at 154.65 and 155.05.
GBP has been on the bid since the positive data in Manufacturing output. “Today's UK manufacturing PMI was stronger than expected. The output sub-index gives an estimate of 4.5% y/y growth in the official ONS output data. Despite this good reading, we see downside risks to this week's UK services PMI survey as it has risen strongly to high levels. Away from the UK, Friday's payroll report presents the main event for the week. In fact, it has the potential to set the tone for the next couple of months. The report should only affect the pace of any eventual announcement on tapering rather than the start date which is still expected to be September. We would expect a stronger number to play USD positive, with only a print sub 100k likely to see the USD weaken”. “A near-term reduction in Syria tensions as we now await the US Congressional vote appeared to help lift European equities this morning and simultaneously knock the…JPY lower”. – Stephen Gallo, European Head of FX Strategy. Meanwhile, attention will be turning towards the dollar again this week with the US payrolls are in focus and will be make or break for September tapering, according to Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities, effecting the cross. “…with 100k being the key threshold.”
GBP/JPY levels
GBP/JPY is steady between USD/JPY and the sterling on the bid Overnight, with a slight bias towards the dollar. The 20 DMA is 151.80, the 50 DMA is 151.40 and the 200 DMA is 146.80. RSI (14) is currently printing 68.40 while supports are ascending from 150.50 151.50 151.80 152.45 153.20 153.95. Spot is currently 154.40 with resistances at 154.65 and 155.05.