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GBP/JPY slides further below 130.00 mark, closer to multi-month lows post-UK jobs data

  • GBP/JPY failed to capitalize on the early attempted recovery move.
  • Tuesday’s mixed UK jobs data also did little to impress the GBP bulls.
  • Fading safe-haven demand weighed on the JPY and might help limit losses.

The selling pressure around the British pound picked up pace in the last hour and dragged the G

BP/JPY cross further below the key 130.00 psychological mark, closer to Monday’s six-month lows.

The cross failed to capitalize on its attempted intraday recovery move, rather met with some fresh supply near the 131.20 region. The prevailing selling bias surrounding the sterling – amid the disappointment from the UK government's controversial approach of fighting the coronavirus pandemic – was seen as one of the key factors that kept a lid on the early uptick.

The intraday pullback seemed rather unaffected by the mixed UK employment details for February. According to the report, the number of people claiming unemployment-related benefits came in at 17.3 during the reported month (21.4K expected) and average earnings including bonus rose by 3.1% as compared to 2.9% previous and 3.0% expected.

The positive readings, to a larger extent, was offset by an unexpected rise in the unemployment rate – to 3.9% from 3.8% previous – and a slight disappointment from average earnings excluding bonus, which edged lower to show a growth of 3.1% as compared to the previous month’s 3.2% and expected, which eventually did little to impress the GBP bulls.

Meanwhile, receding demand for perceived safe-haven currencies, including the Japanese yen amid a modest recovery in the global risk sentiment, might turn out to be the only factor that might help limit deeper losses, at least for the time being.

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