Pound Slips Amid Yen-Driven Dollar Uncertainty

The pound fell on Tuesday as market uncertainty surrounding the dollar persisted due to a yen-driven selloff. Sterling traded marginally lower, slipping 0.12% to 1.3523, while the euro edged down by 0.11% to 1.1610.

The session was dominated by the yen's rapid rally, which pushed USD/JPY through the key 155.0 level and extended to 153.0 overnight. This was fueled by thin liquidity around the U.S. Labor Day holiday.

Francesco Pesole, FX strategist at ING, cautioned that the move looked overdone on short-term fundamentals. He noted that the next meaningful USD/JPY support is at 152 and a break there could lead to 150.