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  • BoE MPC 7-2 vote split to leave rates unchanged provided a modest lift to the GBP.
  • The risk-off mood underpinned the JPY’s safe-haven demand and might cap gains.

The British pound gained some positive traction post-BoE announcement and pushed the GBP/JPY cross to fresh session tops, around mid-142.00s.

The cross witnessed a goodish intraday turnaround from three-week lows, around the 141.25 region, and extended its recovery momentum following a rather hawkish Bank of England (BoE) monetary policy decision this Thursday.

The BoE policymakers decided to leave interest rates steady at 0.75%. The 7-2 vote distribution in favour of the decision, as compared to 6-3 expected, turned out to be one of the factors that provided a modest lift to the British pound.

Despite the goodish intraday positive move, the upside seems limited amid prevailing risk-off mood. Concerns over the outbreak of the coronavirus weighed on investors’ sentiment and might continue to underpin the Japanese yen’s safe-haven demand.

Moving ahead, market participants now look forward to the BoE Governor Mark Carney’s comments at the post-meeting press conference, which might further influence the sentiment surrounding the GBP and produce some trading opportunities.

Technical levels to watch