GBP/USD and GBP/JPY rises to session highs on the day
Near-term price bias for both pairs remain in more bullish territory and both pairs have advanced to session highs for the day now. For cable, hold above 1.3100 and price bias will be more bullish while for GBP/JPY, it's all about trying to hold a break above the 147.00 level for buyers.
The yen and dollar continues to hold weak on the session across the board. And the pound isn't the only one capitalising on this, with the euro, aussie, kiwi, loonie and swissie also advancing against the two currencies. The yen is back to at the bottom of the pile with USD/JPY now trading back above 112.00 again as US 10-year yields inch back above 3% currently.
The risk in the session ahead for upside bias in both pairs above is that of US tariffs. If Trump decides to go through and slap tariffs on China, expect market sentiment to shift a little - despite the fact that there is time to digest that now. Markets don't appear too bothered by the threat of tariffs as yields are trading higher on the day currently.
And that could throw a wet blanket on the gains seen in GBP/USD and GBP/JPY.
