Snapshot: GBP/JPY is trading at 211.97, down 1.91% on the day, after the Bank of England held rates steady at 4.50% with an 8-1 vote, as expected. The accompanying statement, viewed as less hawkish than anticipated, triggered a sell-off in UK Gilts and a sharp repricing lower in Sterling.
- Key level: Watch for support around the 210.00 level, a break of which could signal further downside momentum.
- Risk: BOE Gov Bailey speaks at 12:30 London; markets will scrutinise his remarks for clues about the future path of interest rates.
Bias into NY: Bearish on GBP/JPY below 212.00. The BOE’s cautious stance, coupled with a dovish tilt in the vote split, suggests further Sterling weakness, amplified by a risk-off mood reflected in the Nikkei and Hang Seng closing down.