GBPJPY demand sends EURGBP back down below 0.8400

GBPJPY buying is the standout at the moment 12 Dec

Reports of good buying interest in GBPJPY has sent GBPUSD up to session highs of 1.2646 in rapid time in a move that's also seen EURGBP down to 0.8391 after failing above 0.8425.

That in turn has helped to cap EURUSD at 1.0614 and now trades at 1.0598 while USDJPY has found demand into 115.70 underpinned by the GBPJPY buying.

GBPUSD has some sellers around 1.2650 and EURGBP has demand into 0.8375-80 so that might be enough to halt this latest move for the moment but the GBPJPY buying may have more legs.

As I've said before here a few times the pair is very much favoured by hedge funds given its volatility and wide ranges so interventions/orders can tend to be of substantial size.