A decision by the Bank of England (BoE) in November to leave rates unchanged sent the pair spiraling, only to be made worse by the discovery on the Omicron variant. Get your market update from RichardSnowFX here:
involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to benefit from the interest rate differential. This is also known as ‘’ and forms an integral part of a carry trade strategy. Traders gravitate towards this strategy in the hope of collecting daily interest payments over and above any currency appreciation from the actual trade.
The rate hike was agreed during the Bank of England’s December meeting but was highly anticipated the month before – seen by rising implied probability of a hike in UK money markets at the time. After the BoE decided to leave the interest rate unchanged the GBP/JPY pair corrected immediately by dropping towards the 153 level.
Considering the rather fast bullish move, another retracement should not be discounted. Nearest support comes in at 154.75 while a deeper retracement could even reach 153.50.For reference, the monthly chart helps to view current price action within the context of the pairs historical range. Over the near term, the pair may seem like there is little more room to run but after zooming out it is clear to see that the Pound had traded much higher when trading against the Yen.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
2022 Ford F-150 Lightning, 2022 Rivian R1T, 2023 BMW XM: Today's Car NewsFord's electric F-150, ways to improve the R1T, and spy shots of the XM all made headlines today.
Consulte Mais informação »
Shiba Inu Price Set for 2022 Move as 9 Businesses Join SHIB Burn PledgeShiba Inu price prepares for 2022 move as 9 companies team up in SHIB burn pledge SHIBBurnPledge, ShibArmy, Shibainu SHIBburn Shibburner
Consulte Mais informação »
S\u0026P 500 Price Prediction 2022New year, new quarter, new month. Will you keep an eye out on the S&P 500 in 2022? Will you trade it? Get our price predictions here: Forex trading stockmarkets
Consulte Mais informação »
Technical Analysis: Terra (LUNA) Price Prediction 2022 | CoinMarketCapThis week, CoinMarketCap breaks down the possible price movement of Terra ( LUNA ) with some key levels to keep an eye on! Read more to find out if you should invest in SOL or AVAX instead! LUNA TLM TraderScarpa
Consulte Mais informação »
Hisense floods the zone with TVs at every price point for 2022Mini LED at the high end and 120Hz VRR for a solid price.
Consulte Mais informação »
Winnie-the-Pooh, Bambi among works entering public domain in 2022With the start of a new year, a number of works are now entering the public domain, including the original stories of Winnie-the-Pooh and Bambi.
Consulte Mais informação »