GBP/JPY Pulls Back but Stays Above 200.00 Before UK CPI
The GBP/JPY pair dropped slightly after touching its highest level since July 2024. It moved down from around 200.75 but is still holding above the key 200.00 level. Traders are now waiting for the UK jobs report and the UK inflation (CPI) data, which will play an important role in deciding the next direction of the British Pound.
If UK inflation comes in higher than expected, the Bank of England (BoE) may avoid cutting interest rates at its meeting this week. This could support the Pound and keep GBP/JPY strong. But if the data shows weakness, the pair may come under pressure.
The Japanese Yen is getting some support as investors expect the Bank of Japan (BoJ) to continue raising interest rates. Still, the exact timing of these rate hikes is uncertain, which is limiting the Yen’s strength for now.
In the wider forex market, overall risk sentiment is positive, with global stocks trading higher. This is helping GBP/JPY stay firm above 200.00. But if risk sentiment turns negative or the Yen gains sharply, the pair could move lower.
Impact :
GBP/JPY could rise if UK data is strong. But it might drop again if the BoJ surprises with faster hikes or if markets turn cautious.
