GBP/JPY is pushing against 201.40 resistance supported by a softer Yen

The Pound appreciates against a weaker yen, but is struggling to break above 201.40.
Softer than expected Japanese household spending is weighing on the Yen.
Thursday's "dovish hold" by the BoE is acting as a headwind for the Pound.

Guillermo Alcala FXStreet

The Pound is gaining momentum on Friday, benefiting from Yen weakness following soft Japanese household spending data. The pair bounced from lows around 200.70 earlier in the day, but is struggling to break above the previous two days’ highs, in the area of 201.40.

Japanese data released during Friday’s early Asian session revealed that September’s Overall Household Spending growth slowed down to a 1.8% year-on-year pace from a 2.3% growth in August, missing expectations of a 2.5% reading.

These figures back Prime Minister Takaichi’s comments earlier this week, affirming that the Japanese economy is only halfway through the path to achieve sustainable and stable price growth, and cast some doubts about the Bank of Japan’s plans to hike interest rates at their December meeting.

The Sterling traded back and forth on Thursday, the Bank of England (BoE) left interest rates unchanged in a close-cut vote, with four committee members calling for a rate cut. The monetary policy statement revealed that the bank is confident that inflation has peaked, and Governor Bailey hinted at further monetary easing, boosting hopes of a December rate cut.

Economic Indicator

Overall Household Spending (YoY)

The Overall Household Spending released by the Ministry of Internal Affairs and Communications is an indicator that measures the total expenditure by households. The level of spending can be used as an indicator of consumer optimism. It is also considered as a measure of economic growth. A high reading is positive (or Bullish) for the JPY, while a low reading is negative (or bearish).

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.