The post GBP/JPY trades around 187.00 following a rebound from six-month lows appeared on BitcoinEthereumNews.com.

GBP/JPY holds gains following unexpected dovish comments from BoJ Deputy Governor Shinichi Uchida. BoJ’s Uchida emphasized to maintain its current level of monetary easing for the time being. The Japanese Yen may appreciate due to increased risk aversion amid heightened Middle East tensions. GBP/JPY halts its losing streak that began on July 30, trading around 187.00 during the European session on Wednesday. This rebound could be linked to dovish comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida, who stated, “We won’t raise rates when markets are unstable,” according to Reuters. Deputy Governor Uchida also highlighted that the BoJ’s interest rate strategy may adjust if market volatility affects economic forecasts, risk assessments, or projections. In light of recent market fluctuations, he stressed the importance of closely monitoring the economic and price impacts of their policies, stating, “We must maintain the current degree of monetary easing for the time being.” The escalating geopolitical tensions in the Middle East could impact safe-haven demand and support the Japanese Yen (JPY), undermining the GBP/JPY cross. Hamas appointed Yahya Sinwar as its new leader in Gaza following the assassination of former chief Ismail Haniyeh on Tuesday, according to Reuters. There are growing concerns about potential escalation, with Iran and its allies—Hamas and Hezbollah—pledging retaliation against Israel and the United States for the killing of the Hamas leader. In the United Kingdom, the Halifax House Price Index increased by 2.3% year-on-year in July, up from a revised 1.9% gain in June, marking the sharpest annual growth since January. House prices rose by 0.8% MoM after remaining unchanged in June, surpassing market forecasts of a 0.3% increase. Housing prices may continue to show a modest upward trend for the rest of 2024, supported by lower mortgage rates and the potential for further base rate reductions by the…

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Filed under: News - @ August 7, 2024 2:14 pm