Gbpusd plunged to a 31 year low today on concerns that UK would exit the European Union.
On Sunday, UK Prime Minister, Theresa May said that Article 50 would be triggered by the end of March, 2017. As a result of the announcement, the pound has been under pressure since the beginning of the week.
Recent data from UK suggests that the economy is upbeat. However Investors decided to sell the pound despite good September UK Construction PMI report which rose to 52.3 percent from August's 49.2 percent. The FTSE 100 rallied above 7000 for the first time in 16 months.
Usdjpy broke key resistance and is currently trading around 102.89. On Friday, The Non-Farm Payroll report will be released. Many analysts are of the opinion that if the Jobs data comes out good, there is a likelihood that FED would hike rates in December.
Gbpusd is trading below 1.2750 towards New York close, but we still think that Gbpusd would sink further to 1.2500 as the date of exit draws nearer.
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