GBP/JPY turns upside down below 216.00 after Japan Katayama’s intervention
The GBP/JPY pair surrenders its entire early gains after posting an intraday high of 216.60 and turns negative to near 215.60, as the Japanese Yen (JPY) strengthens after a strong verbal warning of intervention by Japan’s Finance Minister (FM) Satsuki Katayama.
According to a report from Reuters, Japan's FM Katayama said during the European trade on Thursday that they are moving closer to taking decisive action in the foreign exchange markets.
The Asia-Pacific currency has remained under pressure despite the Bank of Japan (BoJ) keeping the door open for further monetary policy tightening this year. On Tuesday, the BoJ held interest rates unchanged at 0.75%, as expected, and guided that the monetary policy path will remain gradually upwards.
Meanwhile, the Pound Sterling (GBP) reflects a mixed performance against its major currency peers ahead of the Bank of England's (BoE) monetary policy announcement at 11:00 GMT. The BoE is expected to leave interest rates unchanged at 3.75% for the third time in a row, with an 8-1 majority.
BoE Chief Economist Huw Pill is expected to be the one Monetary Policy Committee (MPC) member voting for an interest rate hike, as he expressed the need to tighten monetary conditions, in an event this month, stressing the need to contain rising price pressures. The BoE needs to make decisions that give “the most insurance” against a repeat of the 2022 inflation shock, Pill argued, warning against a “wait and see approach,” Bloomberg reported.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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