FXstreet.com (Barcelona) - The Sterling has been hurt by the BoE quarterly inflation report released today on the back that BoE expect a slow recovery and King has spoken about hold on the QE program and he has used the words 'absolute disaster' to illustrate a situation avoided by the UK.
GBP/JPY has fallen around 180 pips in the last hour from 151.15 after the UK unemployment report to break 55 hourly chart level at 150.30 and test MA200 hourly at 149.35. Currently the pair is trading around 149.80/90, 0.30% below today's opening price action at 150.35.
BoE expects a slow recovery in the coming months and no return to pre-crisis growth in a considerable time. Governor King has affirmed that the prospect of absolute disaster has been greatly diminished.
Mervin King also comments that policy will hold unchanged considerable time and investors who are assuming the end of the quantitative ease program are wrong.