GBP/JPY is continuing its downward trend as a result of changes in interest rate differentials. The British pound has been losing ground against the Japanese yen in recent trading sessions. This downward movement is a result of the shift in the interest rate differential between the two currencies.
Investors are closely monitoring the rate changes as they have a significant impact on the value of the currencies. The British pound has been facing pressure due to the Bank of England’s decision to keep interest rates low, while the Bank of Japan has hinted at potential rate hikes in the near future.
As a result, traders are selling off their GBP holdings in favor of the Japanese yen, causing the GBP/JPY pair to continue its descent. This trend is likely to persist until there is a significant shift in interest rate policies or other market factors.
Overall, the GBP/JPY pair is being driven by changes in interest rate differentials, with the Japanese yen currently gaining strength against the British pound. Investors will continue to monitor these developments closely to determine the future direction of the currency pair.