6 Sep 2013
GBP/JPY on free fall after dismal GBP data
FXstreet.com (Athens) – The GBP/JPY tumbled after the release on much worse than expected UK data.
The GBP/JPY draws a sharp selling interest all over the globe on poor UK data
Investors were caught off-guard as they expected that today’s UK data would show how minor contractions on a yearly basis; instead of the widely expected estimations, the data were very soft. The trade deficit released more than doubling to £3.1bn from £1.3bn in June. Elaborating on, Weaker goods exports to non-EU countries were the main problem with the oil balance another source. Furthermore, mining and quarrying fell 0.5%, utilities output was down 2.2%, presumably due to good weather and water supply rose 1.2%. All in all, the manufacturing and industrial production in the British economy came in on the softer side on Friday, expanding 0.2% and 0.0% on a monthly basis during July, both prints missing the median.
Strategic bias and Technical Outlook on GBP/JPY
According to GLOBAL ECONOMICS ING FINMKT “ We should see better numbers in the next couple of months though given the strength in business surveys with manufacturing likely to make a significant positive contribution to GDP growth in 3Q and 4Q13.” At the time of writing, the pair is trading at 155.28, down 0.52%. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 155.79, 155.140, 155.01 and resistance at 156.73, 157.12 and 157.51, respectively.
The GBP/JPY draws a sharp selling interest all over the globe on poor UK data
Investors were caught off-guard as they expected that today’s UK data would show how minor contractions on a yearly basis; instead of the widely expected estimations, the data were very soft. The trade deficit released more than doubling to £3.1bn from £1.3bn in June. Elaborating on, Weaker goods exports to non-EU countries were the main problem with the oil balance another source. Furthermore, mining and quarrying fell 0.5%, utilities output was down 2.2%, presumably due to good weather and water supply rose 1.2%. All in all, the manufacturing and industrial production in the British economy came in on the softer side on Friday, expanding 0.2% and 0.0% on a monthly basis during July, both prints missing the median.
Strategic bias and Technical Outlook on GBP/JPY
According to GLOBAL ECONOMICS ING FINMKT “ We should see better numbers in the next couple of months though given the strength in business surveys with manufacturing likely to make a significant positive contribution to GDP growth in 3Q and 4Q13.” At the time of writing, the pair is trading at 155.28, down 0.52%. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 155.79, 155.140, 155.01 and resistance at 156.73, 157.12 and 157.51, respectively.