Bears Pound Dollar On Data (page 2 of 2)

Subsequently, a cut would effectively boost consumption rates as it lowers the cost of money to the individual. However, with notable evidence including the recent CBI trends survey boosting domestic spending, policy makers may hold steadfast as they look to keep price increases stable. Pound bulls waiting for their chance may finally have an opening.

Japanese Yen

Rising earlier on, the yen retested the psychological 118 figure as comments from Bank of Japan Governor Toshihiko Fukui suggested that it may be a longer period of time before central bankers move to raise interest rates. Although officially ending the zero rate policy in previous weeks, the formidable shift to a tightening bias remains questionable.

Speaking to a parliamentary committee today in Tokyo, Fukui stated that if central bankers can "judge that inflationary pressures are restrained and the economy can achieve balanced growth, we can keep interest rates at very low levels." The comments spoke to traders who previously were awaiting a decision as early as next month and now have to cope with uncertainty. However, although directly affecting markets in the overnight, the comments look to simply be further jawboning by policy makers in attempts to quell discrepancies with previous government sentiment.

The statements come on the heels of yesterday's call by Finance Minister Sadakazu Tanigaki for the Bank of Japan to ensure the stabilization of markets on the ultimate decision. As a result, with further rhetoric surely to follow from both parties, market participants are keeping in mind consecutive quarters of growth and rising, although incremental, consumer prices in fueling downside for the currency pair.