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GBP\/JPY depreciates after registering gains in the previous two successive sessions, trading around 196.30 during the European hours on Thursday. The currency cross remains subdued following the release of Halifax House Prices from the United Kingdom (UK). Traders await the Bank of England\u2019s (BoE) interest rate decision due later in the day.<\/p>\n
The UK\u2019s Halifax House Prices climbed by 2.4% year-on-year in July, following the previous gain of 2.7%. The reading marked the softest annual increase since July 2024. Meanwhile, the monthly prices rose 0.4%, surpassing the expected 0.3% increase.<\/p>\n
The Pound Sterling (GBP) struggles as the Bank of England (BoE) is poised to deliver a 25 bps interest rate cut in August. The median market forecasts expect the Monetary Policy Committee (MPC) to vote 7-to-3 in favor of a quarter-point trim, bringing the BoE\u2019s main reference rate down to 4.0% from 4.25%. The BoE Monetary Policy Report will also be eyed to assess the prospects for UK inflation over the following two years.<\/p>\n
The GBP\/JPY cross depreciates as the Japanese Yen (JPY) advances despite renewed tariff concerns. The upside of the JPY could be limited as the US President Donald Trump said that he would impose an additional 15% tariff on all Japanese imports, as Asahi newspaper cited a White House official.<\/p>\n
Traders remain uncertain over the Bank of Japan\u2019s (BoJ) monetary policy outlook<\/a>. Japan\u2019s central bank decided to keep its interest rates unchanged. However, the BoJ<\/a> raised its inflation forecast and highlighted the increasing downside risks from global trade tensions.<\/p>\nEconomic Indicator<\/h2>\n