- GBP/JPY holds positive ground near 200.10 in Tuesday’s early European session.
- The UK Unemployment Rate rose to 4.4% in three months to April; Claimant Count Change arrived at 50.4K in May.
- Analysts expect the BoJ to commence tapering its monthly bond purchases at Friday's policy meeting, according to Reuters polls.
The GBP/JPY cross trades in positive territory for the third consecutive day around 200.10 during the early European session on Tuesday. The cross dropped a few pips on mixed UK employment data. Investors will shift their attention to the Bank of Japan (BoJ) monetary policy meeting on Friday.
The latest data from the UK Office for National Statistics on Tuesday showed that the ILO Unemployment Rate rose to 4.4% in the three months to April from 4.3% in the previous reading, worse than the market expectation of 4.3%. Meanwhile, the number of people claiming jobless benefits rose by 50.4K in May from an increase of 8.4K in April. The UK Employment Change came in at -140K in the three months to April, versus a -177K decrease in the previous reading.
Apart from this, the UK Average Earnings excluding Bonus rose 6.0% 3M YoY in April, compared to a 6.0% increase in March, beating the estimations. The Average Earnings including Bonus increased by 5.9% in the same period and above the consensus of 5.7%. The Pound Sterling (GBP) attracts modest sellers in the immediate reaction to the mixed UK employment market data.
The BoJ is expected to commence tapering its monthly bond purchases at Friday's policy meeting, according to nearly two-thirds of economists surveyed in a Reuters poll on Tuesday. The Japanese central bank is widely anticipated to keep its short-term interest rate unchanged at 0.0%–0.1%. Investors will closely watch the BoJ’s statement. The dovish tone from the BoJ might exert some selling pressure on the Japanese Yen (JPY) and create a tailwind for the GBP/JPY cross.
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 hits two-week tops near 1.0500 on poor US Retail Sales
The selling pressure continues to hurt the US Dollar and now encourages EUR/USD to advance to new two-week peaks in levels just shy of the 1.0500 barrier in the wake of disappointing results from US Retail Sales.
GBP/USD surpasses 1.2600 on weaker US Dollar
GBP/USD extends its march north and reclaims the 1.2600 hurdle for the first time since December on the back of the increasing downward bias in the Greenback, particularly exacerbated following disheartening US results.
Gold maintains the bid tone near $2,940
The continuation of the offered stance in the Greenback coupled with declining US yields across the board underpin the extra rebound in Gold prices, which trade at shouting distance from their record highs.
Weekly wrap: XRP, Solana and Dogecoin lead altcoin gains on Friday
XRP, Solana (SOL) and Dogecoin (DOGE) gained 5.91%, 2.88% and 3.36% respectively on Friday. While Bitcoin (BTC) hovers around the $97,000 level, the three altcoins pave the way for recovery and rally in altcoins ranking within the top 50 cryptocurrencies by market capitalization on CoinGecko.
Tariffs likely to impart a modest stagflationary hit to the economy this year
The economic policies of the Trump administration are starting to take shape. President Trump has already announced the imposition of tariffs on some of America's trading partners, and we assume there will be more levies, which will be matched by foreign retaliation, in the coming quarters.
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.