Sell EUR/JPY, buy GBP/JPY as rate expectations shift?
Oct 16 (Reuters) -Recent market moves and shifting central bank expectations suggest EUR/JPY could be a good sell and GBP/JPY potentiallya buy.
There is now a growing view that the European Central Bank could be more dovish than the U.S. Federal Reserve and in contrast to the still hawkish-leaning Bank of Japan. OneJapanese investment bank even sees the ECB cutting rates more than the Fed.
EUR/JPY has hit a brick wall on recent forays higher, capped on multiple ascents since Sept 27 with the 163.60 EBS high on Oct 14 the extent of the upside since. It's between 162.19-55 Wednesday.
GBP/JPY has looked more buoyant recently, trading 194.52-195.12 Wednesday and holding just below the 195.96 Sept 27 spike high. It is also above its 188.42-194.45 daily Ichimoku cloud. A decisive break above the now descending 195.43 100-day moving average and 196.00 would be bullish.
The Bank of England may be on the fence with GovernorAndrew Bailey recently hinting at a faster pace of rate cuts in contrast with Chief Economist Huw Pill who argued for cautionnL8N3LG0BF.
Expectations of better growth may be behind Pill's view with the UK economy returning to growth after two months of stagnation nL8N3LN07L. That said, the latest employment report proved cool nL8N3LR078, and argues otherwise. No doubt the BoE will remain very data-dependentinto its Nov 7 policy meeting.
With many Tokyo players wary of holding onto USD/JPY longs or shorts for any protracted period ahead of the Nov 5 U.S. election, some eyes have turned to the JPY crosses including EUR/JPY and GBP/JPY.
Related EUR/JPY comment nL1N3LR0RR, on the ECB nL1N3LQ09Q, GBP and BoE nL1N3LR08W, nL1N3LN06N, BOJ nL1N3LN01Y. For more click on FXBUZ
EUR/JPY: https://tmsnrt.rs/3Nu5EIW
GBP/JPY: https://tmsnrt.rs/3NrVcSd
Haruya Ida is a Reuters market analyst. The views expressed are his own. Editing by Sonali Desai
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
