Snapshot: Sterling is catching a strong bid after the Bank of England held its Bank Rate at 3.75% at 12:00 London, cementing a hawkishly cautious policy stance. With UK core CPI ticking up to 2.6% and services inflation remaining highly resilient, the MPC’s 8-1 vote split signals that a near-term easing cycle is off the table, widening the policy gulf with the Bank of Japan’s sluggish 0.50% regime.
- The BoE’s commitment to a data-dependent hold reinforces the massive 325bp yield cushion, keeping the structural carry-trade bid firmly intact and driving the cross back toward major technical resistance.
- The key watch-item for the NY session is the 08:30 ET US macro data dump, where any dollar-bearish reaction could amplify the Sterling breakout if global risk appetite remains resilient.
Bias into NY: We are buyers of GBP/JPY on intraday pullbacks, targeting a test of the post-BoE highs as the stark monetary policy divergence keeps the path of least resistance firmly to the upside.