Back
4 Jun 2015
GBP/JPY drops to 191.15 post BOE
FXStreet (Mumbai) - The British currency dropped from close to fresh multi-year peak and shed some gains versus the yen in the European session, dragging GBP/JPY lower by 30 pips, mainly as the pound trimmed gains versus the US dollar on the release of Bank of England’s (BOE) monetary policy which offered no new surprises to the market.
BOE turned out to be a non-event as widely expected
Currently, the GBP/JPY pair trades 0.31% higher at 191.20, dropping from 191.53 levels post BOE decision. GBP/JPY trimmed gains as the pound was left unimpressed by the unchanged monetary policy setting by the BOE for the 75th month in a row.
The BoE kept the base interest rate at a historic low of 0.5% for already the 75th straight month, while asset purchases remained unchanged at £375 billion. Earlier speculations for a rate hike became muted after growth slowed in the first quarter of this year.
On the JPY side, the yen defends mild gains versus the greenback which also keeps a check on GBP/JPY prices. Meanwhile, markets now turn their focus towards the upcoming set of US macro releases due later in the US session for further impetus.
GBP/JPY Technical Levels
To the upside, the next resistance is located at 191.55 (Today’s High) levels and above which it could extend gains 192 levels. To the downside immediate support might be located at 189.35 below that at 189.05 levels.
BOE turned out to be a non-event as widely expected
Currently, the GBP/JPY pair trades 0.31% higher at 191.20, dropping from 191.53 levels post BOE decision. GBP/JPY trimmed gains as the pound was left unimpressed by the unchanged monetary policy setting by the BOE for the 75th month in a row.
The BoE kept the base interest rate at a historic low of 0.5% for already the 75th straight month, while asset purchases remained unchanged at £375 billion. Earlier speculations for a rate hike became muted after growth slowed in the first quarter of this year.
On the JPY side, the yen defends mild gains versus the greenback which also keeps a check on GBP/JPY prices. Meanwhile, markets now turn their focus towards the upcoming set of US macro releases due later in the US session for further impetus.
GBP/JPY Technical Levels
To the upside, the next resistance is located at 191.55 (Today’s High) levels and above which it could extend gains 192 levels. To the downside immediate support might be located at 189.35 below that at 189.05 levels.