The British Pound (GBP) is drawing support from a weak Japanese Yen (JPY) on Monday, with bulls aiming for the top of last week´s trading range at the 214.00-214.25 area.
The recent jump in Oil prices is hurting the Yen across the board, while the Pound shrugs off concerns about the weakness of the Labour cabinet
The Yen is suffering amid rising Oil prices after US President Donald Trump dismissed the latest peace proposal submitted by Tehran. The barrel of Brent Oil appreciated to $103.00 from lows near $97.00 last week, and the WTI trades at $94.60, up from Friday’s close at $91.30. These prices pose a serious challenge to economic growth, as Japan is a net Oil importer, and add pressure on an already strained fiscal stability through energy subsidies.
The Pound, on the other hand, is shrugging off fears of political uncertainty with Prime Minister Keir Starmer seriously questioned, after last week’s defeat in the UK’s local elections. Starmer is planning to increase efforts to boost economic growth and improve the UK’s relations with the Eurozone to offset growing support for the populist Reform UK, but calls to resign are mounting, some from within his own ranks. Technical analysis: Bulls are aiming for the 214.10-214.25 resistance area GBP/JPY holds a constructive bullish bias, with bulls aiming for the early May highs in the area between 214.10 and 214.25.