GBP/JPY Rallies Back to 200.00, Near Highest Level in Over a Year
GBP/JPY moved higher at the start of the week in Asian trading, climbing close to the key psychological 200.00 mark. The pair is trading near its strongest level in more than a year as both currency fundamentals and market mood support the move.
The British pound is holding firm after better-than-expected UK GDP data. The UK economy grew by 0.3% in the second quarter, beating forecasts of just 0.1%. Although growth slowed compared to the first quarter, the stronger number has pushed back expectations of a Bank of England (BoE) rate cut until November. This delay in policy easing is keeping the pound supported.
On the other hand, the Japanese yen remains weak. Uncertainty around Bank of Japan (BoJ) policy has hurt the yen’s safe-haven demand. While Japan’s inflation outlook and growth signals point toward gradual policy changes, the lack of clear direction continues to weigh on JPY.
Adding to the move, improving global risk sentiment has reduced demand for the safe-haven yen, further supporting the bullish trend in GBP/JPY.
Impact:
If UK data remains strong, GBP/JPY might break above the 200.00 level. Continued BoJ policy uncertainty could keep yen weak, while clearer signals may pause the rally.
