GBP/JPY advances above 157.00 as UK yields surge, eyes annual highs around 158.00 By Frank_Macro GBPJPY BOE RiskAppetite
h of the 157.00 level and eyeing a test of annual highs around 158.00. It was a slightly risk-off session on Monday, with US equities falling as energy prices rose sharply, keeping inflation fears alive, while hawkish remarks from Fed Chair Powell stocked fears about the pace of US monetary policy tightening. That might typically weigh on GBP/JPY, but another key feature of Monday trade was a big rally in global bond yields, led by a move higher in US yields.
The yen is sensitive to rising rates internationally as the Bank of Japan keeps yields fixed around zero all the way up to 10 years out with its Yields Curve Control policy. The fact that UK yields were up more than 10bps all the way across the curve has thus contributed to a significant widening of UK/Japan rate differentials, thus encouraging yen to sterling flows.
But traders would be wise not to count on rising UK yields pushing the pair ever higher as, say, has been the case with US yields andas of late. While this week’s UK Consumer Price Inflation data out on Wednesday might well further spice up, BoE Governor Andrew Bailey is likely later in the day to remind markets that only “modest” further tightening “might” be likely.
Against the backdrop of a BoE likely to underwhelm the market’s tightening expectations, the prospect for a sustained break above 158.00 in the near term isn’t great. Not unless there is a massive further spurt in risk appetite .
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
GBP/JPY juggles around 157.00 despite unchanged BOJ’s policy and rate hike by BOEThe GBP/JPY is trading in a narrow of 156.7-157.22 from Friday despite the Bank of Japan (BOJ) keeping the interest rates unchanged at -0.1%. The cros
続きを読む »
GBP/USD opens flat ahead of UK’s CPI, Powell’s speech eyedThe GBP/USD is trading lackluster in a narrow range of 1.3170-1.3177 in early Tokyo as investors are limiting their positions ahead of the announcemen
続きを読む »
California lost $8 billion from runaway productions, report estimatesThe eye popping estimate was based on a review of 157 out of 312 projects that applied for but did not receive a California tax credit.
続きを読む »
British Pound (GBP) Forecast: Cable Testing Key Levels Ahead of UK CPIGBP/USD remains gripped by the recent downtrend but bulls remain hopeful that this week’s rally can propel the pair through stubborn resistance. Get your weekly Sterling forecast from WVenketas here:
続きを読む »
Beleaguered health system struggles to treat poor, isolated patientsClinics treating uninsured patients see surges as Medicaid disenrollment looms; local doctors-in-training plan careers around helping those most in need.
続きを読む »
Thousands Of Runners From Around The World Gear Up For 37th Annual LA MarathonThousands of runners from around the world were expected Sunday to run through some of Los Angeles' most iconic neighborhoods on their 26.2-mile route.
続きを読む »