The GBP/JPY cross finds some support near the 187.40 area during the Asian session on Tuesday, though it lacks follow-through and remains close to a multi-month low touched the previous day.
GBP/JPY struggles to capitalize on the overnight modest bounce from a multi-month low. Global trade war fears benefit the JPY’s safe-haven status and cap the upside for the cross. The divergent BoJ-BoE policy outlook supports prospects for a further depreciating move. Spot prices currently trade around the 187.85 region, nearly unchanged for the day, and seem vulnerable to prolong the recent downfall witnessed over the past three weeks or so.
Adding to this, BoE Governor Andrew Bailey told reporters that the central bank expects to make further rate cuts this year. This might continue to undermine the British Pound and keep a lid on any attempted recovery for the GBP/JPY cross. There isn't any relevant market-moving economic data due for release from the UK on Tuesday, though BoE Governor Andrew Bailey's scheduled speech might influence the GBP.
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