On Monday, GBP/JPY regained some positive momentum, snapping a two-day losing trend.
The British pound was supported by expectations that COVID-19 measures in the UK will be eased.
Any additional advances for the cross were held back by a minor increase in demand for the safe-haven JPY.
During the early European session, the GBP/JPY cross refreshed daily high, but then lost a few points. The cross was last seen trading close below the 154.00 line, with just little gains.
On Monday, the cross received some dip-buying at the mid-153.00s, halting the previous week’s retracement slide from levels above the important 155.00 psychological threshold. This was the first day of positive movement in the previous three sessions, helping the GBP/JPY cross recoup a significant portion of Friday’s losses.
As investors looked past the Bank of England’s dovish statement last week, the pound found some support amid speculation that remaining limitations could be eased sooner than July 19. Sajid Javid, the new UK Health Secretary, will brief MPs on when the COVID-19 restrictions in England will be lifted later this week.
However, traders were unable to place new bullish wagers around the GBP/JPY cross due to a rise in demand for the safe-haven Japanese yen. In the absence of meaningful market-moving economic announcements, it is best to wait for some follow-through purchasing before positioning for any more gains.
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