Wednesday, 10 Mar 2010

GBP and JPY Under Selling Pressure

The leading events in the forex market today have been the sudden dip in the value of both the British Pound and Japanese Yen. With the GBP already facing sell-pressure from a string of bad data, debt concerns, and political division in London, today's unexpectedly dismal industrial and manufacturing reports from the UK have simply added further weight onto the struggling currency. The Pound, as a result, has fallen over 40 pips against the EUR, and 50 pips against the US Dollar in today's mid-day trading.

The Japanese Yen, likewise, has experienced losses as a recent Bank of Japan (BOJ) report indicates a potential monetary easing policy, to be enacted later next month. Should such a policy be undertaken, the impact will likely result in an intentional weakening of the Japanese currency, as speculation of this move already has. The machinery orders report from Japan has also added to the possibility of such an easing program being implemented.