GBP gained again day again despite data showing deflation is still here and all the problems that are stacked on the UK Government. GBP/USD did fall to 1.5455 but the optimistic outlook helped push GBP/USD as high as 1.5525, its highest level this year.
EUR/JPY fell below 130.00 while USD/JPY dropped to 95.50 following Japanese data releases but both have since risen. So little changed at the end of the day suggesting the market is getting close to having as much risk as it would like at this time.
The market is acutely aware that the road ahead is likely to be a bumpy; increasingly the outlook is optimistic. Caution is advised as there are still plenty of challenges that need to be ironed out before we hit the home straight.
