GBP/JPY Trades Below 200 as Strong Yen and UK Fiscal Worries Limit Gains
The GBP/JPY currency pair is struggling to stay above the 200.00 level as the British pound comes under pressure and the Japanese yen gains strength.
The pound is being weighed down by UK fiscal concerns. Rising government borrowing and weak demand for UK bonds are making investors cautious. This is creating doubts about the country’s financial stability and hurting confidence in sterling.
On the other hand, the Japanese yen is getting support as a safe-haven currency. With global uncertainty rising, many traders prefer the yen, which is adding more pressure on GBP/JPY.
Even though the pair recently touched year-to-date highs, it has failed to hold those levels. Strong demand for the yen and worries about the UK economy are limiting any major upside moves in GBP/JPY.
Impact:
If UK fiscal worries continue, GBP/JPY could fall further. However, if risk sentiment improves or bond yields drop, the pair might recover some ground.