The British pound rose for a second day on Tuesday after UK markets reopened following a long weekend. Traders showed slightly positive sentiment when former President Trump decided to delay imposing 50% tariffs on eurozone goods.
Yen Slides on BOJ Remarks and Debt Worries
The upbeat tone in global markets put pressure on the Japanese yen. The yen fell against major currencies despite comments from Bank of Japan Governor Kazuo Ueda, who warned that inflation risks remain and hinted at possible further monetary tightening.
At the same time, concerns about Japan’s debt crisis weighed on the currency. A recent report stated that the Ministry of Finance may reduce its issuance of ultra-long government bonds this fiscal year. Demand from traditional buyers has fallen, pushing long-term yields higher. During Asian trading hours, the 30-year bond yield fell by around 20 basis points to 2.86%, adding further downward pressure on the yen.
Technical Outlook for Sterling
Trading volume in the UK market was light, but sentiment appears supportive of further gains in sterling. Bulls are currently testing resistance near 194.25. If the pound breaks above this level, it may face the next hurdle at the May 13 high of 196.25. On the downside, support lies at Monday’s low of 193.05 and the 38.6% retracement level at 191.75.
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