The GBP/JPY stands at 189.24 reflecting a moderate gain of 0.11% in Tuesday's trading session.
The Bank of England maintains its neutral stance, with Governor Bailey hinting at potential rate cuts even before inflation reaches the bank’s target.
Japanese and British preliminary PMIs from February are due on Thursday.
In Tuesday's session, the GBP/JPY pair recorded modest gains, trading at 189.24. Influences on the pair's movement encompass the ongoing shifts in both UK and Japanese financial and economic landscapes which are shaping the Bank of England (BoE) and the Bank of Japan (BoJ) monetary policy decisions. The British bank remains cautious warning about the resilient local economy while the BoJ doesn’t give clear signals on when it will leave its ultra-loose policy.
On the British front, Bank of England (BoE) officials, including Governor Andrew Bailey, gave no fresh policy guidance during their testimony before the UK Treasury Select Committee. Bailey perceived an upturn in the economy and advised that the central bank could consider rate cuts even before inflation hits their target levels. However, as for now, markets are pricing in that the first rate cut will be in the August meeting but incoming data will continue shaping the timing of the easing cycle.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.