fxpulsation
Posts : 8759 Join date : 2012-01-25
| Subject: GBP Extend Losses, JPY Test New Lows Mon Jan 28, 2013 10:28 am | |
| GBP Extend Losses, JPY Test New Lows The week started with optimism on good news out of China. The majority of Asian shares advanced amid China's industrial profits y/y surprised to the upside (5.3% vs. exp.3.0%). The Shanghai's Composite index surged 2.29%, Hang Seng and Taiex added 0.43% and 0.55%, while Nikkei and Kospi retreated 0.94% and 0.36% respectively. The US stock futures traded to the upside; the S&P, Dow Jones and Nasdaq futures extended Friday's gains. USDJPY tested new highs early in the session. The currency hit 91.26, before slipping under 91.00 on profit taking. EURJPY and GBPJPY followed the downside correction. According to Wall Street Journal, the Ex- Japanese Econmin and Abe's advisor Takenaka stated that JPY has room to fall further, pointing 95.00 level. On Friday, UK GDP disappointed the already low expectations (GDP q/q: -0.3%, vs. -0.1% exp. and 0.9% prior & GDP y/y: 0.00%, vs. 0.2% exp. and 0.00% prior). GBPUSD extended losses in the Asian session, and collapsed to 1.5728 in European opening, while the BoE head and Financial Stability Board Chairman Mark Carney gave insight of a further monetary stimulus this week-end. Carney will give a conference in Zurich this afternoon (15.00 GMT). | |
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