Both EUR/GBP and GBP/JPY are heavily influenced by the big players in the market who move them around almost at will. Over the last two months we have seen a big rise in EUR/GBP and fall in GBP/JPY and we have consistently heard from the market that these moves have been driven by speculators selling the pound. We saw the first signs of these moves being unwound on Tuesday afternoon in NY when there were some big GBP/JPY flows and we saw a lot more unwinding overnight. EUR/GBP fell 2 big figures from peak to trough, which is over 500 pips in old GBP/DEM terms, quite a huge move. I am pretty sure that there will be more to come although we can expect to see some consolidation first.
Good luck today and TGIF
