- GBP/JPY surges to year’s high, up by 0.18%, amid positive market sentiment.
- Expectations of a dovish Fed and resolution of the US debt-ceiling imbue strength to high beta currencies.
- Despite the overall upward bias, the technical outlook suggests potential downside pressure on GBP/JPY.
GBP/JPY climbed to fresh year-to-date (YTD) highs at 174.68 before a pullback that dragged the exchange rate toward the 174.10s area. A risk-on impulse caused expectations for a dovish US Federal Reserve (Fed) amongst geopolitical issues like the US debt-ceiling resolution underpinned high beta currencies. Therefore, safe-haven peers persisted pressured, as the GBP/JPY traded at 174.12, up 0.18%.
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