GBP/JPY hits session lows near 207.50 at the London open as the Yen rallies ahead of next week’s BoJ meeting. Tuesday’s rebound from YTD lows at 207.10 was capped near 209.00.
The British Pound extends losses on Wednesday as the Japanese Yen rallies across the board, with investors bracing for a quarter-point rate hike by the Bank of Japan at next week’s monetary policy meeting. The GBP/JPY rebound from year-to-date lows at 207.10 was capped at the 209.00 area on Tuesday, and the pair retreated again on Wednesday, hitting session lows near 207.50 at the London session opening.
Higher crude prices, a traditional headwind for Yen rallies, have failed to dent JPY’s recovery. Brent oil is ticking down on Wednesday but remains near its highest levels in the last two months at $97.00, as the conflict in the Middle East widens.
In the UK, Bank of England Governor Andrew Bailey acknowledged on Tuesday that inflation risks “are on the upside,” but also vowed to dispel the idea that rate hikes are inevitable, with policy depending on economic and geopolitical developments. The Pound dropped against most peers following Bailey’s comments.
Strategists at Rabobank call September’s BoJ meeting pivotal for global funding dynamics — if the BoJ supports a more rapid pace of rate rises, markets may have to re-examine long-standing carry-trade assumptions.
This London-open stamp extends Tuesday’s GBP/JPY YTD low pack. Also Bailey MPR / GBP.
Informational only. Not trading advice, signals, or a guarantee of any market outcome.
Written and fact-checked with AI assistance, reviewed by a human editor before publication.
No comments yet. Be the first to share your view.
EUR/USD nudges above 1.1640 to 12-day highs on broad USD weakness ahead of Thursday’s ECB meeting, widely seen delivering a quarter-point hike to 2.5%.
AUD/USD trades near 0.7230 (chart 0.7229) in Europe after hawkish Hauser remarks. Four-year high stamps 0.7277 and headline 0.7280 quoted separately.
USD/INR jumps marginally above 95.00 (chart stamp 95.07) as oil surges on US–Iran tit-for-tat. PTI early trade: open 94.80, touch 94.95 (−21 paise from 94.74) — stamps quoted separately.