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  • GBP/JPY capitalizes on upbeat market mood on Wednesday.
  • GfK Consumer Confidence Index from UK will be released next.
  • BoE’s Haskel says they keep negative rates under review.

The GBP/JPY pair fell to 133.00 area during the European trading hours pressured by risk-aversion but staged a decisive rebound in the second half of the day. The pair advanced to its highest level in two weeks at 134.23 in the last hour and was last seen trading at 134.05, gaining 0.17% on a daily basis.

GBP/JPY capitalizes on risk appetite

Improving market sentiment during the American session made it difficult for the JPY to find demand as a safe-haven. The upbeat macroeconomic data releases from the US revived hopes of a global economic recovery. Additionally, Biopharmaceutical New Technologies (BioNTech) announced on Wednesday that the COVID-19 vaccine that they co-developed with Pfizer yielded positive results in first human trials to further boost risk flows.

Reflecting the positive market environment, the 10-year US Treasury Bond yield is up more than 4% and the S&P 500 is gaining 0.6%.

Later in the day, the GfK Consumer Confidence data from the UK will be looked upon for fresh impetus. During the Asian session, Monetary Base and Foreign Bong Investment data will be featured in the Japanese economic docket.

Technical levels to watch for