British Pound remains on the front foot amid BoJ-inspired Yen weakness
The GBP/JPY cross scales higher for the third consecutive day – also marking the sixth day of a move up in the previous seven – and trades around the 210.75-210.80 region during the early European session on Tuesday.
The British Pound remains strong as the Japanese Yen weakens, buoyed by the Bank of Japan's bold 31-year high rate hike to 1.25%. This follows a surprisingly dovish outlook, and a split vote on policy tightening, keeping investors cautious. Despite this, the GBP/JPY cross continues to gain ground, reaching around 210.75-210.80 during early European trading.
However, the pair still lags behind last week's peak, signaling potential caution for bullish traders amidst mixed signals. Meanwhile, the US Dollar remains bullish, gaining traction from hawkish Federal Reserve expectations and geopolitical tensions. Meanwhile, gold and Bitcoin show signs of weakness, with gold sinking towards a three-day low at $4,315 and Bitcoin trading below $85,500 after a 6.7% surge the previous day.
Meanwhile, West Texas Intermediate (WTI) oil sees some buying, slipping below the $93.00 mark after a four-day decline. The Bank of Japan's recent rate hike signals a move towards monetary policy normalization, a stark contrast to the Bank of England's cautious stance.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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