Thursday 3 October: GBP under pressure

The pound has weakened due to a 'dovish turn' by the BOE, potentially putting the GBP on the 'to short list'. Although, I would still expect the GBP to recover Vs JPY, therefore my preference remains for 'risk on' short JPY trades.

Especially considering the middle east fears dissipated (for now), positivity surrounding china continues, US data remains positive, all in all the risk on soft landing narrative remains.

Of course, US service ISM data and upcoming NFP could change the the narrative.

The question I'm asking myself this morning is whether to jump on this GBP weakness as a catalyst continuation trade. (Which would have made a very good 'in the moment catalyst', but I wasn't at the charts when the news hit). Or whether to stick with JPY shorts.....I'm currently leaning towards JPY shorts.

Feel free to email any questions: johnelfedforexblog@gmail.com