GBP/JPY Falls on Weak Treasury Yields - SHORT

23 thg 3, 2023

GBP/JPY is experiencing a decline from a one-week high and a fading corrective bounce off 160.80. The drop to 161.00 is in response to the decline of Treasury bond yields and the general weakness of the British Pound ahead of the Bank of England's monetary policy announcement on "Super Thursday."

Following the US Federal Reserve's and US Treasury's announcements, yields tumbled. The pessimistic outlook for big manufacturing firms in Japan according to the Reuters Survey also adds to the pressure on the GBP/JPY.

Despite the strong UK inflation data and the Brexit bill's passage through the House of Commons, the GBP/JPY buyers have not seen much success due to ongoing concerns about Brexit and banking fears.

The recent announcements by Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen triggered a brief corrective bounce in the bond market, but it was short-lived. Fed officials have indicated that they do not anticipate rate cuts for this year, and Yellen ruled out the consideration of "blanket insurance" for bank deposits.

The US 10-year and two-year Treasury bond yields are currently pressured at 3.45% and 3.96%, respectively, while the S&P 500 Futures show mild gains despite Wall Street's downbeat performance.

Although the GBP/JPY pair's recent losses ignore the negative results of the monthly Reuters survey, they are still significant. The survey shows that big Japanese manufacturers remain pessimistic about business conditions for the third consecutive month in March.

Please support me with LIKE and FOLLOW

23 thg 3, 2023

Đóng lệnh: đạt mục tiêu