- GBP/JPY remains above 194.50 as markets continue to sell yen.
- The BoE is still not moving interest rates, but officials are slowly switching sides.
- The trading week will conclude with the release of UK GDP on Friday.
The GBP/JPY pair remains stable, above 194.50, while the Japanese yen continues to soften overall in the wake of the Bank of Japan (BoJ) “Yinterventions”. The Bank of England (BoE) left rates unchanged as markets expected, but the Monetary Policy Committee (MPC) votes once again tilted in favor of a rate cut.
The BoE voted 7-2 to leave rates on hold early on Thursday. Two members of the Monetary Policy Committee voted in favor of a rate cut: Sir David Ramsden, Deputy Governor for Banking and Markets, joined Dr Swati Dhingra, external member of the BoE Monetary Policy Committee, in voting in favor of a cut of 25 basis points. Initially, markets expected a result of 8 votes in favor and 1 against, with Dr. Dhingra the only supporter of lowering rates.
UK Gross Domestic Product (GDP) is due to be released on Friday, with markets expecting a rebound in UK quarterly growth figures. First quarter UK GDP is expected to rise 0.4% quarter-on-quarter, compared to the -0.3% contraction in the previous quarter.
Further public appearances on Friday from BoE policymakers, including BoE chief economist Huw Pill and Dr Dhingra, are expected later in the day.
GBP/JPY Technical Outlook
The cross is inching towards bullish territory above the 200 hourly EMA, near the 194.00 level. The pair is building a short-term price bottom from 194.50, while the pair makes a break towards 195.00. The GBP/JPY pair has risen around 1.8% since hitting a short-term low below 191.50 following last week's 3% drop from the 197.50 area.
GBP/JPY hourly chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
