GBP/JPY trying to stabilize near mid-145.00s as Carney’s press conference gets underway

   “¢   BoE upgrades economic growth outlook and provides a minor lift to the British Pound.
   “¢   A downward revision of inflation forecasts prompts some fresh selling at higher levels.  

The GBP/JPY cross swung around 60-pips in the knee-jerk reaction to the BoE announcement but now seems to have stabilized in the neutral territory, around mid-145.00s.

The British Pound initially got a minor lift after the UK central bank signalled that more than one hike will be needed to keep inflation in check and also upgraded its economic growth outlook for 2019, 2020, 2021, albeit quickly ran into some fresh supply as market realized that the BoE also lowered its inflation forecasts for 2019 and 2020.

This coupled with a unanimous decision to hold rates unchanged, as against some analysts’ expectation that at least one policymaker may back an immediate rate hike, and the big caveat that Brexit transition will be smooth failed to give today’s decision a hawkish touch and seemed to have disappointed GBP bulls.  

Meanwhile, comments by the BoE Governor Mark Carney, in the post-meeting press conference also did little to provide any impetus, though the prevalent risk-on mood undermined the Japanese Yen’s safe-haven status and might turn out to be the only factor that might help limit any meaningful downside.

Technical levels to watch