- GBP/JPY has struggled to take advantage of the modest overnight bounce from its lows a few months ago.
- The fear of Global Trade War benefits JPY's safe haven status and keeps the cross upswing.
- The Divergent Boj-Boe policy outlook supports further depreciation movement outlook.
GBP/JPY Cross will find some support near the 187.40 area during Tuesday's Asian session, but there are no follow-throughs and remain close to a low low of months the day before. Currently, spot prices are trading in the 187.85 region, and the day remains largely unchanged, and it appears vulnerable to extend the recent downfall seen around the last three weeks.
President Donald Trump's fresh tariffs on goods imports will promote the flow of several shelters and lend support to the Japanese Yen (JPY). In fact, several BOJ officials have recently supported a more rate hiking lawsuit amid concerns that they place importance on consumer spending. This shows a greater divergence compared to the Bank of England (BOE) bleak outlook, examining the negative outlook for the GBP/JPY cross.
The UK Central Bank cut interest rates to a quarter last week, with some policymakers hoping for a bigger move to offset the slowdown. Additionally, BOE predicts its growth outlook for 2025, expanding by 0.75% compared to its previous estimate of 1.5%. In addition to this, BOE Governor Andrew Bailey told reporters that the central bank is hoping for further interest rate cuts this year. This could continue to weaken the British pound (GBP) and keep the lid in attempts to recover the GBP/JPY cross.
BOE Governor Andrew Bailey's scheduled speech could affect the GBP, but there is no economic data to drive relevant markets scheduled for release from the UK on Tuesday. Apart from this, the JPY price dynamics should contribute to the production of short-term trading opportunities around GBP/JPY crosses. Nevertheless, the above-mentioned basic background appears to be leaning in favor of bearish traders, suggesting that the path with the least resistance to spot price remains on the downside.
Economic indicators
Bo's Governor Bailey Speech
Andrew Bailey is Bank of EnglandGovernor. He took office on March 16, 2020 at the end of Mark Kearney's term. Bailey served as chief executive of the Financial Conduct Office before being designated. The British central banker was the lieutenant governor of the Bank of England from April 2013 to July 2016, and was also the Chief Calendar of the Bank of England from January 2004 to April 2011.
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Next release: February 11, 2025 12:15
frequency: Irregular
consensus: –
Previous: –
sauce: Bank of England
