GBP/JPY Soars as Yen Underperforms Amid Structural Weakness

The Pound-Yen currency pair rose on Monday as the Japanese Yen underperformed across G10 currencies. The cross was trading near 214.70, up 0.85% on the day.

Japan's current account slipped into deficit in June for the first time in 17 months, while recent intervention by the Bank of Japan had little impact due to structural pressures.

The Bank of Japan has begun raising rates after a decade of ultra-loose policy but is tightening slowly, leaving Japanese yields low versus peers and sustaining Yen-funded carry trades.