The GBP/JPY cross attracts buyers for the second straight day and advances to the mid-212.00s during the first half of the European session on Tuesday amid a combination of supporting factors.
Data released earlier showed that Japan’s Household Spending fell 6.8% year-on-year in September, marking the tenth consecutive monthly decline and the sharpest drop since September 2020. This complicates the Bank of Japan’s (BoJ) plans for further interest rate hikes, which, along with the prevailing risk-on mood, contributes to the Japanese Yen’s (JPY) relative underperformance and acts as a tailwind for the GBP/JPY cross.
Meanwhile, the Bank of England (BoE) maintained a hawkish communication relative to the BoJ, keeping the yield advantage firmly in favor of the British Pound (GBP). A softer US Dollar (USD) further benefits the GBP, providing an additional supporting factor for the cross. JPY bears, however, remain on high alert amid speculation that authorities will intervene to prop up the domestic currency and growing bets on an imminent BoJ rate hike.
The Summary of Opinions from the BoJ’s October monetary policy meeting revealed that some policymakers called for speeding up the pace of interest rate hikes, as underlying inflation has reached the central bank’s 2% target. This makes it prudent to wait for follow-through buying before positioning for further gains in GBP/JPY. Traders now look to the preliminary UK Q3 GDP report on Wednesday for fresh directional impetus.
Pound Sterling Price This Week
The table below shows the percentage change of the British Pound (GBP) against listed major currencies this week. The British Pound was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.89% | -0.76% | -0.21% | -0.02% | -0.75% | -1.34% | -0.06% | |
| EUR | 0.89% | 0.15% | 0.69% | 0.89% | 0.24% | -0.44% | 0.85% | |
| GBP | 0.76% | -0.15% | 0.53% | 0.73% | 0.10% | -0.60% | 0.70% | |
| JPY | 0.21% | -0.69% | -0.53% | 0.18% | -0.61% | -1.13% | 0.09% | |
| CAD | 0.02% | -0.89% | -0.73% | -0.18% | -0.76% | -1.35% | -0.01% | |
| AUD | 0.75% | -0.24% | -0.10% | 0.61% | 0.76% | -0.68% | 0.51% | |
| NZD | 1.34% | 0.44% | 0.60% | 1.13% | 1.35% | 0.68% | 1.32% | |
| CHF | 0.06% | -0.85% | -0.70% | -0.09% | 0.00% | -0.51% | -1.32% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed represents GBP (base)/USD (quote).
