GBP/JPY Falls After Hitting 203.00 – Yen Gains Strength on Japan’s Strong Data!
The GBP/JPY pair went up early Monday and reached a new high above 203.00, but soon fell slightly as traders booked profits. The pair is now trading near 202.50, showing that buyers are becoming more careful.
The Japanese Yen got stronger after Japan’s latest household spending report showed better-than-expected growth in August. This strong data hints that Japan’s economy is improving and the Bank of Japan (BoJ) could think about changing its easy-money policy soon.
At the same time, Sanae Takaichi is expected to become Japan’s first female prime minister. She is known for supporting loose monetary policy, which means she may prefer to keep interest rates low for longer. This could slow down the yen’s rise in the future.
On the other hand, the British Pound is under pressure because of a stronger US Dollar and worries about the UK’s economic outlook before the November budget. Traders also believe the Bank of England (BoE) will not raise rates again this year due to slower growth and cooling inflation.
Because of these mixed signals, GBP/JPY traders are waiting for clearer signs before taking big positions in the market.
Impact:
GBP/JPY might move in a narrow range for now. The pair could rise if the pound gets support from UK data, but stronger Japanese numbers might pull it lower again.