GBP/JPY consolidates Thursday's gains around 147.70, stays near multi-month highs
|- GBP/JPY is trading in a narrow channel on Friday.
- Wall Street's main indexes look to open in the positive territory.
- BoE's Vlieghe says negative rates could be needed later in the year.
The GBP/USD pair climbed to its highest level in more than a year at 147.80 on Thursday and seems to have gone into a consolidation phase on Friday. As of writing, the pair was virtually unchanged the day at 147.68.
Risk flows could hurt JPY during American session
On Thursday, rising US Treasury bond yields made it difficult for the JPY to find demand and helped GBP/JPY to gather bullish momentum. Additionally, the sharp upsurge witnessed in the GBP/USD pair provided an additional boost to the British pound.
At the moment, the S&P 500 Futures are up 0.42% on the day and if risk flows continue to dominate the markets in the second half of the day, GBP/JPY could try to regain its traction.
Earlier in the day, the data from the UK showed that the business activity in the manufacturing sector expanded at a strong pace in February.
Meanwhile, Bank of England (BoE) policymaker Gertjan Vlieghe argued on Friday that a large amount of evidence gathered from countries that already have negative rates show that that negative rates are effective.
Vlieghe further noted that negative rates could be needed later this year or into the next year if there is persistent labour market slack to keep wage pressures low. These dovish comments might be limiting the GBP's gains for the time being.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.