Ok want to touch on a few things here
Pips .. the rate cut is not designed to prop up the stock market. It is desgiend to prop up the bond market. The lower the short term rates the steeper the curve. The steeper the curve the more money banks make. Right now we have had one bank in the UK nationalized due to sub prime debt ( Northern Rock ). US governement trying not to have this happen in the US as US economy is already fragile.
When the short term yield on the bonds is low investors move money back into the stock market , making it go up. When the yield is high on the 10 year T bonds the market goes down as investors move money into T bonds.
The move in the GBPJPY will not be so much from the USDJPY move , but from the risk assumption if the markets go up. The JPY crosses are known to be carry trades. When there is risk aversion (markets going down) they carry traders unwind ( sell their position ). When the markets go up they carry risk and by high yielding currency pairs. If you bought 200 lots of gbpjpy at 205 rode it to 250 and rode it back to 205 and sold the intial position for break even you would have made lots of money on interest alone.
TRIALS THAT SHAKE SOME, CONFIRM OTHERS!
