GBP/JPY retreats toward 185.50 on upbeat Japanese economic data – Crypto News – Crypto News
Connect with us
Shifted downwards in the near-term unless bulls reclaim 164.00 Shifted downwards in the near-term unless bulls reclaim 164.00

others

GBP/JPY retreats toward 185.50 on upbeat Japanese economic data – Crypto News

Published

2 years ago

on

Share:

  • GBP/JPY trades lower around 185.60 on the back of upbeat Japan’s retail data.
  • Pound Sterling (GBP) could experience gains due to the BoE’s support for the hawkish stance.
  • Investors turn cautious as they expect the BoJ to maintain its dovish stance.

GBP/JPY retreats from the previous gains, currently trading lower around 185.60 during the Asian session on Thursday. The pair is facing downward pressure due to the upbeat Japan’s economic data. As said, Large Retailer Sales for July improved to 6.0% from the previous 4.1% figure. While Retail Trade (YoY) for the said month, rose to 6.8%, against the market consensus of 5.4% swinging from the 5.6% prior.

However, the GBP/JPY pair enjoyed upward strength during the week due to the support for the hawkish stance by the Bank of England (BoE) Deputy Governor Ben Broadbent. Broadbent emphasized the need for higher rates due to the wage pressure at the Jackson Hole Symposium.

On the other hand, the Bank of Japan (BoJ) is expected to maintain its ultra-loose monetary policy settings. This stance could potentially deter sellers from making aggressive bets around the pair. Additionally, BoJ Governor Kazuo Ueda stated last week that the underlying inflation in Japan is slightly below the 2% target. This suggests that the central bank might maintain the dovish approach until the next summer.

The decline in US Treasury yields persists, leading to a weakening of the US Dollar (USD). Consequently, this trend is bolstering the Japanese Yen (JPY), which could contribute to putting pressure on the GBP/JPY pair. The yield on a 10-year US bond reached a low point of 4.08% during the previous session, and it is currently trading at 4.11%.

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending