GBP/JPY slumps to 7-week low below 181.00 after BoE leaves key rate unchanged

GBP/JPY came under heavy bearish pressure and dropped to multi-week lows on Thursday.
Bank of England left its policy rate unchanged at 5.25% in split vote.
Bank of Japan will announce policy decisions early Friday.

Eren Sengezer FXStreet

GBP/JPY turned south in the European session on Thursday and dropped to its lowest level since early August at 180.83 before recovering to the 181.50 area. As of writing, the pair was down 0.9% on the day at 181.54.

Following the September policy meeting, the Bank of England (BoE) decided to leave the interest rate unchanged at 5.25%. Although investors were expecting the BoE to raise the policy rate by 25 basis points, soft inflation data from the UK revived expectations for a no change. "inflation has fallen a lot in recent months, we think it will continue to do so," the BoE said in its policy statement.

Nevertheless, the immediate reaction caused Pound Sterling to suffer large losses against its major rivals. GBP/USD was last seen losing 0.6% on the day and EUR/GBP was up 0.4% at 0.8670, highlighting the negative impact of the BoE's policy decision on the currency.

According to Reuters, the chance of the BoE raising rates by 25 bps in November declined to 64% from 81% before the rate decision.

Pound Sterling price today

The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the weakest against the Japanese Yen.

	USD	EUR	GBP	CAD	AUD	JPY	NZD	CHF
USD		0.06%	0.53%	0.22%	0.47%	-0.27%	0.13%	0.65%
EUR	-0.08%		0.45%	0.14%	0.38%	-0.35%	0.06%	0.57%
GBP	-0.48%	-0.45%		-0.30%	-0.06%	-0.79%	-0.35%	0.12%
CAD	-0.22%	-0.16%	0.31%		0.24%	-0.50%	-0.09%	0.42%
AUD	-0.45%	-0.40%	0.08%	-0.23%		-0.72%	-0.32%	0.19%
JPY	0.25%	0.34%	0.81%	0.48%	0.73%		0.41%	0.91%
NZD	-0.12%	-0.05%	0.42%	0.09%	0.36%	-0.38%		0.52%
CHF	-0.66%	-0.57%	-0.12%	-0.44%	-0.20%	-0.92%	-0.52%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

During the Asian trading hours on Friday, the Bank of Japan will announce its monetary policy decisions. Investors expect the BoJ to keep its policy settings, including the yield curve control strategy, unchanged.

Technical levels to watch for

GBP/JPY

Overview
Today last price	181.58
Today Daily Change	-1.54
Today Daily Change %	-0.84
Today daily open	183.12

Trends
Daily SMA20	184.06
Daily SMA50	183.26
Daily SMA100	179.83
Daily SMA200	171.08

Levels
Previous Daily High	183.35
Previous Daily Low	182.46
Previous Weekly High	184.39
Previous Weekly Low	182.52
Previous Monthly High	186.77
Previous Monthly Low	180.46
Daily Fibonacci 38.2%	182.8
Daily Fibonacci 61.8%	183.01
Daily Pivot Point S1	182.61
Daily Pivot Point S2	182.09
Daily Pivot Point S3	181.72
Daily Pivot Point R1	183.49
Daily Pivot Point R2	183.86
Daily Pivot Point R3	184.38

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.