Home›Forex›Major Pairs›Pound slips versus yen after post-2007 peak

Pound slips versus yen after post-2007 peak

GBP/JPY eased after a move to the highest level since December 2007, while BoE Deputy Governor Sarah Breeden said the Iran war shock is unlikely to become embedded in inflation.

Reported · Written up by our desk · Major Pairs

FXStreet reports that GBP/JPY traded with a mild negative bias on Thursday after pausing from its previous day climb to the highest level since December 2007.

The British pound had strengthened across the board following reports that British Home Secretary Shabana Mahmood could replace Rachel Reeves as Chancellor, with markets viewing her as a more market-friendly option.

Support also came from higher oil prices tied to renewed Middle East tensions, which revived expectations of potential rate hikes from the Bank of England, even as BoE Deputy Governor Sarah Breeden said the Iran war shock is less likely to feed into inflationary dynamics that would require policy action.

FXStreet added that despite the easing, the interest-rate differential with Japan remains wide, a headwind for the yen, while traders also watched for possible Japanese intervention after Japan’s Finance Minister Satsuki Katayama said authorities are ready to take action in the currency market at any time.

More like this

Sources