GBP/JPY rises as Yen weakens on Middle East energy supply fears
- GBP/JPY trades near a one-month high as the US-Iran conflict pressures the Japanese Yen.
- Energy supply risks through the Strait of Hormuz keep Oil markets volatile.
- Markets scale back Bank of England rate-cut bets, offering modest support to the British Pound.
GBP/JPY trades higher on Tuesday as the ongoing US-Iran conflict pressures the Japanese Yen (JPY) amid fears that disruptions in the Strait of Hormuz could threaten energy supplies to Japan, which relies heavily on imported Oil.
At the time of writing, GBP/JPY trades around 212.25, hovering near a one-month high.
Japan relies on the Middle East for about 95% of its crude oil imports, with roughly 70% passing through the Strait of Hormuz. Any prolonged disruption or geopolitical tensions in the region could weigh on Japan’s economic growth.
The ongoing supply disruptions have embedded a geopolitical risk premium in Oil prices. However, prices dropped sharply on Monday — with WTI and Brent falling 5.84% and 3.69%, respectively — after US President Donald Trump said, “I think the war is very complete, pretty much.”
Meanwhile, global leaders have stepped in to calm market fears. G7 countries are discussing a coordinated release of oil reserves through the International Energy Agency (IEA).
Japan’s Trade Minister Akazawa said the country backs the IEA’s plan for a coordinated release of oil reserves. G7 Energy Ministers are also scheduled to hold a meeting later on Tuesday.
Still, Oil prices remain elevated as the US-Iran conflict expands with airstrikes across the Middle East. This has revived fears of global inflation, complicating the monetary policy path for major central banks.
The British Pound (GBP) is drawing modest support as traders scale back expectations for a Bank of England (BoE) interest rate cut in March. Earlier, markets had priced in roughly an 80% probability of a rate cut, while expectations are also growing that the Bank of Japan (BoJ) could delay further rate hikes.
On the data front, Japan’s Gross Domestic Product (GDP) grew 0.3% QoQ in Q4, in line with expectations and up from 0.1% in the previous quarter, while annualized GDP rose to 1.3% from 0.3%, beating the 1.2% forecast.
Meanwhile, in the UK, BRC Like-for-Like Retail Sales rose 0.7% YoY in February, slowing from 2.4% in the previous month and falling short of the 2.3% forecast.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.14% | 0.06% | -0.19% | -0.59% | -0.10% | -0.30% | |
| EUR | 0.05% | -0.06% | 0.11% | -0.15% | -0.53% | -0.04% | -0.24% | |
| GBP | 0.14% | 0.06% | 0.13% | -0.10% | -0.47% | 0.02% | -0.16% | |
| JPY | -0.06% | -0.11% | -0.13% | -0.26% | -0.64% | -0.15% | -0.33% | |
| CAD | 0.19% | 0.15% | 0.10% | 0.26% | -0.38% | 0.11% | -0.07% | |
| AUD | 0.59% | 0.53% | 0.47% | 0.64% | 0.38% | 0.48% | 0.29% | |
| NZD | 0.10% | 0.04% | -0.02% | 0.15% | -0.11% | -0.48% | -0.17% | |
| CHF | 0.30% | 0.24% | 0.16% | 0.33% | 0.07% | -0.29% | 0.17% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
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