Snapshot: GBP/JPY trades at 213.25, up 0.33% on the session, driven by a recovery in UK yields following yesterday’s dip. All eyes are now on BOE Governor Bailey’s speech at 13:20 London for clues on the Bank’s near-term policy intentions.
- UK 2-year yields have rebounded, down 8bp to 4.317%, providing support for the Pound.
- Risk sentiment remains positive, but volatility could increase around Bailey’s comments; hawkish signals could fuel further upside while dovish hints may trigger a quick reversal.
Bias into NY: The bias is cautiously bullish, targeting 213.50, contingent on Bailey maintaining a hawkish stance and UK yields holding their ground. A softer dollar, with the DXY at 97.77, offers additional tailwinds.