Pound Pressure Ahead of Statement

Morning Report: 09.00 London

• Markets are at least on the move this morning, with localised movements for different currencies. The S&P 500 is up slightly after Tuesday’s sell off, while the dollar index holds at the highs.                                                                                                             

                               
                                                                                                                                                                           
                               

• Gold and silver are the big movers, though the trend is still slipping lower.

• The pound is coming in for some considerable pressure, with the GBP/JPY off by 0.22% ahead of tomorrow’s Bank of England meeting.
           
                               

                               

                               

• The NZD/USD is also suffering, in contrast to the AUD/USD which showing some relative strength.

                               

                               

Coming up today:

• Coming up today we have UK manufacturing production at 09.30, following by Italian GDP at 100.00.

• From 13.30 we switch to North America with US & Canadian Trade Balance data.

• UK GDP update follows at 15.00.


Trade Idea:

• The GBP/JPY is dipping lower, but this could be a good time to reload those long trades with strong support around the 172.75 level.

A good way to play this is a HIGHER trade predicting that the GBP/JPY will close above 173.00 in 3 days time for a potential return of 105%.

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Summary: