GBP/JPY Holds Steady Around 200.00
The British Pound to Japanese Yen (GBP/JPY) pair is moving sideways near the 200.00 mark. This level is just below its multi-year high reached after strong recent gains in the forex market.
Traders are now focusing on two big central bank events this week: the Bank of England (BoE) and the Bank of Japan (BoJ). The BoE is widely expected to keep interest rates unchanged at 4%. Policymakers may continue with a cautious stance as inflation risks remain high in the UK economy.
On the other hand, the BoJ faces pressure due to political issues and economic challenges, which could delay any immediate rate hike. Still, some investors believe another rate increase later this year is possible.
Recent Japanese economic data, such as stronger GDP growth, higher real wages for the first time in months, and a tight labor market, support the case for BoJ action. Meanwhile, upcoming UK job reports and inflation numbers could play a key role in driving Pound Sterling demand in forex trading.
Impact:
GBP/JPY might stay range-bound until the BoE or BoJ take clear policy steps. Strong UK inflation or jobs data could lift the Pound, while Japan’s uncertainty might cap Yen strength.
