The cross recovers from a 1.5-week low amid JPY underperformance and a modest USD pullback, though UK political uncertainty caps gains.
The GBP/JPY cross climbed back above 212.00 in early European trading, snapping a two-day losing streak. The recovery follows a 1.5-week low hit earlier Monday, with bulls eyeing the 100-day Simple Moving Average as support.
The Japanese Yen weakened on rising economic concerns tied to Middle East tensions and disruptions in energy supplies via the Strait of Hormuz. Meanwhile, the British Pound found support from a slight pullback in the USD, which retreated from its highest level since April 7. However, domestic political uncertainty in the UK, including calls for Prime Minister Keir Starmer’s resignation and recent Labour Party losses, may limit further GBP gains.
Traders are also cautious amid speculation of potential Japanese intervention to support the JPY. Market focus now shifts to UK employment data due Tuesday, which could influence near-term direction.