Sterling is under pronounced pressure in forex markets, trailing as the day's worst performer. This wave of selloff initiated yesterday following BoE Governor Andrew Bailey's articulation to the parliament, hinting that UK is "much nearer" to hitting the terminal interest rates. Further aggravating the downfall, a BoE survey rolled out today unveiled a stark decline in businesses' on-year inflation expectations, thus spotlighting intensified speculation over the path of BoE's tightening. Euro and Swiss Franc are also caught in this downward spiral, but slightly not as drastically as Sterling. Contrary to European currencies, commodity currencies are witnessing a tepid recovery. But Australian and New Zealand Dollars remain unmoved from their positions as the weakest players of the week. Dollar retains its ground, drawing support from an encouraging jobless claims data release, while sustained buying momentum seems reserved primarily against European majors. Meanwhile, Yen is on recover, as part of near term consolidations. Technically, GBP/JPY's correction from 186.75 looks ready to extend lower with break of near term trend line support. Sustained trading below 183.51 support would target 55 D EMA (now at 182.16). A rebound might occur at this juncture, at least on the first attempt. But look further ahead, there's a tangible possibility that GBP/JPY's decline from 186.75 represents a larger-scale correction to the uptrend from 155.33. The impending two weeks are critical, as employment and inflation data could essentially steer the dynamics, serving as precursors to BoE rate decision on September 21. Sustained break of 55 D EMA could pave the way to 176.29. In Europe, at the time of writing, FTSE is up 0.03%. DAX is down -0.42%. CAC is down -0.18%. Germany 10-year yield is down -0.0398 at 2.617. Earlier in Asia, Nikkei dropped -0.75%. Hong Kong HSI fell -1.34%. China Shanghai SSE declined -1.13%. Singapore Strait Times rose 0.12%. Japan 10-year JGB yield rose 0.0021 to 0.658. | 