GBP/JPY Key event – UK Manufacturing PMI (May 3rd, 11:30 GMT +3)

On the 28th of April the representatives of Bank of Japan held a meeting and they were happy with the latest economic statistics, as the decision to cut the interest rate had a positive impact on the overall economy situation. This time they decided to keep the policy unchanged (asset buyback program = 80 trillion yen a month, refinance rate = -0.1%).

At the same time, “Grexit” referendum in the UK is getting closer and many investors want to avoid economic and geopolitical risks and start to reallocate their assets to the other markets. That is one of the reasons why UK economy is struggling at the moment.

GBPJPY chart:

There is still a downward trend on GBPJPY D1 chart and according to “MACD” indicator further downward rate movement is possible after a short correction on the price chart.

Publication of UK Manufacturing PMI will be a key event this week:

If actual results turn out to be worse than forecasted it will have a negative impact on British Pound and most likely the downward rate movement will continue.

Start trading with FREE DEMOhttps://iqoption.com/promo/binary-options_en/?aff=21262