The cross falls to a one-and-a-half-week low amid UK political instability and safe-haven demand for the JPY.
The GBP/JPY cross extended its decline for a second straight day, slipping below the 212.00 mark and hitting a one-and-a-half-week low during Friday’s Asian session. The move follows a breach of the 100-day Simple Moving Average, signaling potential further downside.
The British Pound’s underperformance stems from deepening political uncertainty in the UK, including the resignation of Health Minister Wes Streeting and pressure on Prime Minister Keir Starmer after Labour Party losses in local elections. Meanwhile, the Japanese Yen benefits from its safe-haven status amid geopolitical tensions, though concerns over rising wholesale inflation in Japan cap gains.
Japan’s Producer Price Index surged 4.9% year-over-year in April, driven by higher oil and import costs linked to Middle East conflicts. The data underscores inflationary pressures but has not yet triggered a strong JPY rally.