As the world’s top investment manager and financial market journalist, I bring you the latest on the GBP/JPY pair, which dropped to 190.30 following an expected rate cut by the Bank of England (BoE).
The BoE reduced interest rates by 0.25%, while the Bank of Japan (BoJ) raised rates, causing a shift in the rate differential between the GBP and the Yen. This led to a decline in the GBP/JPY pair, with the Yen gaining ground against the Pound Sterling.
Looking ahead, the upcoming trading week will see minimal economic data releases for both currencies, providing a temporary respite from key economic indicators. However, the GBP/JPY pair is on track for a fourth consecutive down week, with bearish momentum pushing it towards the 190.00 level.
Technical Analysis
Despite the recent decline, the GBP/JPY pair remains in a long-term bull market, with bids still above the 200-day Exponential Moving Average (EMA) at 171.07. While the pair is retreating from multi-year highs, it is still entrenched in bullish territory, indicating potential opportunities for investors.
Pound Sterling FAQs
For those unfamiliar with the Pound Sterling, here are some key facts:
- The GBP is the oldest currency in the world and the official currency of the United Kingdom.
- It is the fourth most traded currency in the world, with key trading pairs including GBP/USD, GBP/JPY, and EUR/GBP.
- The value of the Pound Sterling is influenced by monetary policy decisions by the Bank of England, economic indicators, and trade balance data.
Understanding these factors can help individuals make informed decisions about their investments and financial planning.