During Tokyo trading hours, U.S. Treasury Secretary Bessent said that trade talks with China would begin on the 10th. After this news, the pound-yen rose from the low 190 yen range by more than 1 yen. It stayed strong and reached 191.66 yen in the New York market.
After the FOMC meeting, it dropped back to around 190.50 yen, but there were still many buyers waiting at lower levels.
At today’s Bank of England (BOE) meeting, a 0.25% rate cut is expected, and the market is already prepared for it.
People are watching closely to see if the BOE will mention more rate cuts in the future.
There are worries about the economy slowing down because of trade issues with the U.S., but inside the U.K., rising wages and social costs may push inflation higher.
Because of these mixed risks, it will be difficult for the BOE to decide. If the BOE does not suggest more rate cuts, the pound-yen is likely to stay strong after the meeting.
GBP/JPY Forecast Range: 190.00 – 192.00
Note: The above is not a guarantee of profit. Please make your own decisions when trading.