GBP/JPY CUTS ITS INTRADAY GAINS BEFORE UK PMI DATA, TRADES NEAR 181.20
- GBP/JPY pulls back ahead of the release of Purchasing Managers Index data from the UK.
- BoE Governor Andrew Bailey’s hawkish remarks bolster the Pound Sterling.
- Japanese Yen could gain ground from growing expectations of a change in the BoJ's policy stance in 2024.
GBP/JPY trims its intraday gains, trading around 181.20 during the early European hours on Friday. However, the GBP/JPY pair attempted to extend its gains after rebounding from the two-month low at 178.34.
The Pound Sterling (GBP) receives upward support against the Japanese Yen (JPY), which could be attributed to the hawkish stance of the Bank of England (BoE) Governor Andrew Bailey.
Governor Bailey commented that there is still a way to go before inflation aligns with its target, adding to the overall hawkish sentiment. However, BoE chose to keep the interest rates steady at 5.25% in Thursday's decision.
Moreover, GfK Consumer Confidence for December, declined by 22 readings as expected against the previous decline of 24. Investors await Purchasing Managers Index (PMI) data from the United Kingdom (UK) on Friday.
On the other side, the Japanese Yen may find support from growing expectations of an impending change in the Bank of Japan's (BoJ) policy stance in 2024.
Japanese Finance Minister Shunich Suzuki, as reported by Reuters, conducted a verbal intervention in response to the recent rapid appreciation of the Japanese Yen. While refraining from commenting on daily currency movements, he emphasizes a close monitoring of market dynamics. Suzuki expresses the preference for currencies to exhibit stable movement aligned with underlying fundamentals.
The initial Jibun Bank Manufacturing PMI for November revealed a contraction in business activities in the manufacturing sector, declining to 47.7 from the previous figure of 48.3. However, the Service PMI improved to 52.0 from the prior 50.8.
Traders could exercise caution, refraining from making aggressive bets ahead of the crucial BoJ policy meeting scheduled for next week
- GBP/JPY pulls back ahead of the release of Purchasing Managers Index data from the UK.
- BoE Governor Andrew Bailey’s hawkish remarks bolster the Pound Sterling.
- Japanese Yen could gain ground from growing expectations of a change in the BoJ's policy stance in 2024.
GBP/JPY trims its intraday gains, trading around 181.20 during the early European hours on Friday. However, the GBP/JPY pair attempted to extend its gains after rebounding from the two-month low at 178.34.
The Pound Sterling (GBP) receives upward support against the Japanese Yen (JPY), which could be attributed to the hawkish stance of the Bank of England (BoE) Governor Andrew Bailey.
Governor Bailey commented that there is still a way to go before inflation aligns with its target, adding to the overall hawkish sentiment. However, BoE chose to keep the interest rates steady at 5.25% in Thursday's decision.
Moreover, GfK Consumer Confidence for December, declined by 22 readings as expected against the previous decline of 24. Investors await Purchasing Managers Index (PMI) data from the United Kingdom (UK) on Friday.
On the other side, the Japanese Yen may find support from growing expectations of an impending change in the Bank of Japan's (BoJ) policy stance in 2024.
Japanese Finance Minister Shunich Suzuki, as reported by Reuters, conducted a verbal intervention in response to the recent rapid appreciation of the Japanese Yen. While refraining from commenting on daily currency movements, he emphasizes a close monitoring of market dynamics. Suzuki expresses the preference for currencies to exhibit stable movement aligned with underlying fundamentals.
The initial Jibun Bank Manufacturing PMI for November revealed a contraction in business activities in the manufacturing sector, declining to 47.7 from the previous figure of 48.3. However, the Service PMI improved to 52.0 from the prior 50.8.
Traders could exercise caution, refraining from making aggressive bets ahead of the crucial BoJ policy meeting scheduled for next week
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