GBP/JPY pulls back to 211.70 as US Dollar strength pressures the pair, though hawkish BoE rhetoric and weak Japanese economic data limit further downside potential.
The cross pulled back from 212.15-212.20 to around 211.70 as a firmer US Dollar weighs on the Pound, but BoE Deputy Governor Lombardelli's Tuesday remarks that further rate hikes remain likely limit GBP losses, while weak Japanese data undermines the Yen. The article itself concludes the downside appears limited and dip-buying may emerge, so good and bad forces largely cancel out.
The GBP/JPY cross retreated from an intraday high of 212.15-212.20 to trade near 211.70 on Wednesday. While a firmer US Dollar weighs on the Pound, the Bank of England's hawkish outlook and Japan's weak household spending data continue to provide underlying support for the pair.
A broadly firmer US Dollar, boosted by bets on more aggressive Fed tightening, is weighing on the British Pound and pulling the cross down from the 212.15-212.20 area to around 211.70.
The hawkish BoE stance limits Sterling losses, and Japan's Household Spending fell for the 10th straight month in September, which weakens the Yen by complicating BoJ rate-hike plans; bulls need acceptance above the 100-day SMA near 213.00.