Back
6 Feb 2015
GBP/JPY hit session lows after UK Trade deficit rose to record highs
FXStreet (Mumbai) - The GBP/JPY> pair extended losses to hit the low of 179.56 after the data in the UK showed the UK goods trade deficit widened to a record high in December.
Losses capped ahead of the US NFP data
Currency markets are witnessing very low volatility ahead of the US Non-farm payrolls data. The cautious tone has seen limited reaction in the GBP pairs despite a sharp rise in the UK total trade deficit data. The UK’s deficit on trade in goods and services was estimated to have been GBP 2.9 billion in December 2014, compared with GBP 1.8 billion in November 2014. Annually, the total trade deficit widened to GBP 34.8 billion in 2014; the largest deficit since 2010.
GBP/JPY Technical Levels
The immediate resistance is seen at 180.52, above which gains could be extended to 181.32 (100-DMA) levels. On the flip side, support is seen at 179.40 and 179.00 levels.
Losses capped ahead of the US NFP data
Currency markets are witnessing very low volatility ahead of the US Non-farm payrolls data. The cautious tone has seen limited reaction in the GBP pairs despite a sharp rise in the UK total trade deficit data. The UK’s deficit on trade in goods and services was estimated to have been GBP 2.9 billion in December 2014, compared with GBP 1.8 billion in November 2014. Annually, the total trade deficit widened to GBP 34.8 billion in 2014; the largest deficit since 2010.
GBP/JPY Technical Levels
The immediate resistance is seen at 180.52, above which gains could be extended to 181.32 (100-DMA) levels. On the flip side, support is seen at 179.40 and 179.00 levels.