- GBP/JPY gains ground ahead of a slew of data releases from the United Kingdom.
- UK Retail Sales (MoM) could improve to 1.5% from the previous 3.2% decrease.
- BoJ Governor Kazuo Ueda expects the monetary conditions in Japan to have remained accommodative.
GBP/JPY receives upward support ahead of the release of Retail Sales data from the United Kingdom (UK) due on Friday. The monthly report for January is expected to show an improvement of 1.5%, swinging from the previous decrease of 3.2%. While year-over-year report could print a reading of -1.4% as compared to the previous -2.4 reading. The GBP/JPY cross inches higher to near 189.10 during the Asian trading hours.
GBP/JPY cross faced challenges as the Japanese Yen (JPY) cheered the remarks from Japan's top officials, hinting at a potential intervention in the Forex market. Additionally, the escalated geopolitical tensions in the Middle East could have increased demand for the safe-haven JPY and dragged the GBP/JPY cross downward.
Bank of Japan (BoJ) Governor Kazuo Ueda stated on Friday that the specific methods for rolling back stimulus would hinge on the prevailing economic conditions. Considering the current economic and price outlook, monetary conditions in Japan are expected to remain accommodative even after the cessation of negative rates.
The quarterly growth of Gross Domestic Product (GDP) extended its decline to 0.3% in the fourth quarter of 2023 compared to the previous contraction of 0.1%. The GDP (YoY) growth surprisingly declined by 0.2% against the expected increase of 0.1%, swinging from the growth rate of 0.2%.
The United Kingdom's economy has officially entered a technical recession, marked by two consecutive quarters of negative GDP growth. Furthermore, Bank of England policymaker Catharine L. Mann mentioned that the central bank requires at least one more set of inflation data before determining its next steps.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0500 after US inflation data
EUR/USD stays under pressure and trades below 1.0500 in the American session on Wednesday. The US Dollar stays resilient against its rivals after the data showed that the annual CPI inflation edged higher to 2.7% in November, not allowing the pair to stage a rebound.
Gold extends rally above $2,700
Gold preserves its bullish momentum and trades above $2,700 for the first time in two weeks. Investors fully price in a 25 basis points Fed rate cut in December following the November inflation data from the US, boosting XAU/USD.
BTC faces setback from Microsoft’s rejection
Bitcoin price hovers around $98,400 on Wednesday after declining 4.47% since Monday. Microsoft shareholders rejected the proposal to add Bitcoin to the company’s balance sheet on Tuesday.
Why is the ECB set to cut interest rates again and what does that mean Premium
The ECB is widely expected to cut interest rates on Thursday for the fourth time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.
GBP/USD drops below 1.2750, awaits US inflation data
GBP/USD is back in the red below 1.2750 in European trading on Wednesday. The Pound Sterling loses traction amid renewed US Dollar buying as risk sentiment worsens heading into the key US CPI showdown. The US inflation data is key to gauging the pace of Fed's future rate cuts.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.