- The British Pound remained depressed amid persistent UK political/Brexit-related uncertainties.
- A mild bid tone surrounding the Japanese Yen further collaborates to the ongoing corrective slide.
The British Pound lost some additional ground through the European session on Thursday and dragged the GBP/JPY cross to fresh two-week lows, around the 132.40-50 region in the last hour.
The cross extended its recent corrective slide from over two-month tops, with a combination of negative forces exerting some follow-through bearish pressure for the second consecutive session on Thursday – also marking the fourth day of a negative move in the previous five.
UK political/Brexit uncertainties weigh
The British Pound added to its recent losses remained depressed amid persistent UK political/Brexit-related uncertainties. Bearish traders seemed rather unaffected by the UK Junior Brexit minister’s comments that there are now discussions about re-opening the withdrawal agreement.
This coupled with a modest pickup in the demand for the Japanese Yen, supported by sliding US bond yields and despite a positive mood around equity markets, further collaborated to the pair’s weaker tone and the ongoing slide to the lowest level since September 12.
It will now be interesting to see if the cross is able to find any support at lower levels, especially after the recent fall of over 300 pips since last Friday, or continues with its bearish slide as market participants now look forward to a scheduled speech by the BoE Governor Mark Carney for a fresh impetus.
Technical levels to watch
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