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Message: [QUOTE="Zerologic, post: 240397, member: 126754"] [ATTACH type="full"]31082[/ATTACH] GBP/JPY lost ground for the second day in a row under pressure from UK GDP Yesterday the GBPJPY pair drew a bearish candle with a long body extending the previous candle. The price of the GBPJPY pair formed a high of 191,540, a low of 189,638, closing at 189,731. The pair extended its decline for the second day in a row after ending consolidation near the lower band. The UK economy returned to growth in November, with Gross Domestic Product (GDP) rising by 0.1%, after contracting 0.1% in October. However, this fell short of market expectations for a 0.2% expansion. The Services Index for October remained unchanged at 0% q/q, compared with 0.1% in October. In November, Monthly Industrial Production and Manufacturing fell by 0.4% and 0.3% respectively, with both figures coming in below market expectations. On the other hand, investors increased their expectations of a BoE interest rate cut after data showed an unexpected decline in inflation even though it was still above the 2% inflation target. The UK Consumer Price Index (CPI) increased by 2.5% year-over-year in December, down from 2.6% in November and below market forecasts of 2.7%. From Japan, the JPY's strengthening was supported by increasing expectations of a BoJ interest rate hike next week. According to Bloomberg, citing unnamed sources, the BoJ is likely to raise interest rates next week unless there is significant market disruption after the inauguration of US President-elect Donald Trump. Today investors are waiting for the release of UK retail sales data with expectations of an increase of 0.4% from the previous 0.2%. [/QUOTE]

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