The GBP was the main focus of attention last night with the Barclays/Blackrock deal ensuring that the cable remained well bid. The numbers bandied about were very large but overall the pound hasn’t strengthened all that much. I am still hearing that there is some heavy EUR/GBP buying taking place and Jamie is on the job verifying this as we speak.
USD/JPY will again be the lead pair in Asia and it will take it’s initial lead from the Nikkei, which I expect to open a little lower after Wall Street ended the North American session flat. It looks like there are some fairly serious sellers around 87.50 but I would also expect to see lots of trailing stops just above there. A clean beak above 87.60 should target the 88.20 breakdown point.
Good luck today.
