The Bank of England is expected to leave rates unchanged this week, but the GBP is still coming under pressure. RBC suggests the losses are stemming from reports over the weekend that Bradford & Bingley (BB.LN) is set to issue more profit warnings and Alliance & Leicester (AL.LN) is planning a large dividend cut to shore up its finances. GBP/USD now at 1.9747.
GBP/USD's break below 1.98 puts its recent bullish break above 1.9850 in question, says BNP Paribas. Now trades at 1.9748. The bank says a break below 1.9710 would reverse tack and suggest the former low of 1.9420 will come under pressure.
USD/JPY Looks The Strongest - Commerzbank
USD/JPY looks like the strongest currency pair as JPY crosses remain supported, says Commerzbank analyst Andrew Hart. The spot is currently testing its 200-day MA at 107.50 and a sustained break here would target the June and February highs of 108.58 and 108.61 says the bank. Now at 107.50, key support comes in at 106.63. For EUR/JPY Hart looks for key support between 166.03 and 165.64 to hold for a close for the day back above the 20-day MA at 167.46, and then onto 168.95. EUR/JPY now at 168.11
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