GBP/JPY plummets to fresh 6-month lows

16 July, 2019

Persistent Brexit-related uncertainties continue to weigh on the British Pound. Upbeat UK wage growth figures did little to lend support or stall the downfall. The focus now shifts to a scheduled speech by the BoE Governor Mark Carney.

The GBP/JPY cross remained heavily offered through the early European session and dropped to fresh six-month lows, around mid-134.00s in the last hour. 

The cross extended last week's rejection slide from the 136.00 round figure mark and remained under some selling pressure for the third consecutive session on Tuesday amid persistent Brexit-related uncertainties.

Adding to this, the prevalent cautious mood around equity markets further boosted the Japanese Yen's relative safe-haven status and collaborated to the pair's ongoing slide to the lowest level since early-January.

Meanwhile, Tuesday's upbeat release of UK average earnings data might extend some support to the British Pound and turned out to be the only factor helping ease the bearish pressure, at least for the time being.

However, given that the cross has already found acceptance below the key 135.00 psychological mark, any attempted bounce might now be seen as a selling opportunity and hence, runs the risk of fizzling out rather quickly.

Moving ahead, the BoE Governor Mark Carney's scheduled speech might influence market expectations about the central bank's monetary policy outlook and produce some fresh short-term trading opportunities.


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