GBP/JPY steadies above 166.50 as UK Inflation meets estimates
|- GBP/JPY is holding itself above 166.50 as the UK Inflation has landed in line with the estimates.
- The UK Inflation has landed at 9.1% while the core CPI is been recorded at 5.9%.
- Prudent commentary in the BOJ minutes has supported the yen bulls.
The GBP/JPY pair has not displayed any wild move as the UK Inflation has landed in line with the forecasts at 9.1%. The core Consumer Price Index (CPI) has been recorded at 5.9%, lower than the estimates of 6% and the prior print of 6.2%.
Even a stable inflation print demands a 50 basis point (bps) rate hike by the Bank of England (BOE) in its July monetary policy. It is worth noting that the BOE elevated its interest rates by 25 bps in June. Lower growth prospects tied the hands of the BOE policymakers to see beyond the nominal rate hike figure.
The labor market is extremely tight in the UK economy as the administration has managed to generate sufficient employment opportunities in the first quarter. Also, the Claimant Count Change data tumbled significantly in May. The UK economy recorded only 19.7K jobless claims vs. -65.5k recorded earlier.
On the Tokyo front, June’s monetary policy minutes from the Bank of Japan (BOJ) have supported the yen bulls broadly. As per the BOJ minutes, the central bank will stick to its ultra-loose monetary policy. The overall demand in the Japanese economy is not so strong and a higher inflation rate seldom banks upon costly fossil fuels and food prices.
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.