Yesterday, the UK GDP for the July-September period was announced at 1.9%, which was lower than the expected 1.0%. However, there was no noticeable market reaction. At last week’s Bank of England (BOE) meeting, the policy interest rate was left unchanged as expected, marking the end of major events for the year. While expectations for a rate cut next year remain, the weaker GDP result was thought to possibly lead to selling of the Pound. However, with the London market closing for the holidays starting tomorrow, traders may be avoiding taking new positions.
Many markets are already starting their holidays today, so no big movements are expected. However, the Pound is likely to face continued pressure next year due to expectations of BOE rate cuts.
Forecast range for GBP/JPY: 197.10 to 196.00
Note: The information above does not guarantee profits. Make your own decisions when trading.