Forex Flash: GBP and JPY opened lower before bouncing - Societe Generale (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that both Sterling and Yen opened lower and have since bounced somewhat.

He sees that press reports of the seemingly imminent BoJ appointment surround price action which have seen spot drift to fill the gap to Friday´s close around 93.50. Overall, he notes that long term Yen bearishness is unaffected. Looking to the UK he notes that the rating downgrade was expected and short covering has been seen so far. He writes, “The UK government is desperate to revive growth, and welcomes a weaker pound. The focus of policy will now to be explore any and all always to ease monetary policy and get cheap credit to more parts of the economy. Sterling remains under pressure, exporters’ profits will benefit, the UK economy will take time to react, interest rates will stay anchored and inflation expectations (and break-even rates) can move higher.”