JPY Surges Amid US-Japan Intervention Speculation

The Japanese Yen surged against major currency peers in Monday's European trading session, despite earlier gains being largely given back. This move came as speculation grew about potential fresh US-Japan intervention to counter excessive volatility and disorderly movements in the JPY.

Japan's Finance Minister Satsuki Katayama confirmed that Japan 'won't hesitate to carry out more forex intervention with US', and also stated that a joint intervention was conducted on Friday. US President Donald Trump also weighed in, saying Washington helped prop up the JPY as a sign of friendship and to aid the world economy.

The British Pound, meanwhile, fell against its peers due to traders reevaluating Bank of England interest rate hike expectations. BoE Governor Andrew Bailey's recent comments suggested that he doesn't want the public to perceive the central bank as biased towards rate hikes. The BoE ultimately left interest rates unchanged at 3.75%, signaling vigilance over second-round inflation effects.