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GBP/JPY Vaccillates Within Daily Range - See charts
By Benny Nardino | January 16, 2007
On the contrary, the jump in the CPI rate, (2.9%) would have been a 
major factor in the Bank of England’s surprise decision to raise interest rates to a five-and-a-half-year high of 5.25 pct last week. It is a mighty headache Mervyn King, the BoE Governor. There is a strong evidence that BoE’s MPC had access to these figures during their rate-setting deliberations. This sharp increase in inflation have increased market expectations that the Bank of England will raise interest rates again over the coming months, possibly with a back-to-back hike next month ahead of the release of its quarterly inflation report.
However, trades against the pound still remain within the daily range as indicated in the charts.
On GBP/JPY, I was taken out this morning by the above news spike with a couple of small losses (236.89/237.06 & 236.61/80). I had anticipated a pullback from the recent highs due to carry overs on the YEN. But with noises and speculations coming from Japan something soon especially on their assertion on what they called “.. normal economic policy”. It is highly expected that they will act soon rather than later.
I have just taken what I might consider a final trade for the day (at 236.43/still open) with expectation at 237.08/10-ish. I still believe in small bullish profit from here.
Let me know how you all doing
Happy trading
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Benny Nardino
Benny…
“A Mentor’s footprint is worth a thousand walk of trailblazing.
Seek the WISDOM of the fore-runners.”
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