According to FX Strategist Paul Robson at RBS, “Within this, the policy responses from Europe and the US will be crucial, in our view – whether China also comes through with additional easing also looks set to be important. While economic surprises are back to baseline and financial conditions have improved, soft equity and commodity markets tend not to be a constructive environment for GBP/USD.”
Bernanke appeared to open the door a little more to further easing, with the labor market described as a “grave concern”. Given the “sustained and substantial” improvement language of the FOMC, even a better than expected payroll number on Friday seems unlikely to change this. “Further easing should help limit the downside in GBP/USD over the next month.” Robson notes.