The GBPJPY exchange rate has inflation data ahead from the British and Japanese economies.
GBPJPY – Daily Chart
The price of GBPJPY now trades below resistance at the 199.55 level and that becomes the barrier to further gains. The lower level at 190 becomes an initial support for the exchange rate.
UK inflation data will arrive on Wednesday at 3pm HKT, while Japanese export data comes earlier at 7:50am HKT. A speech from Bank of Japan governor Ueda could move the pair at 13:10 HKT on Thursday, but the headline will be Japanese inflation at 7:30am HKT on Friday.
The British pound was hurt by data which showed that the UK economy grew by 0.1% between July and September, according to the Office for National Statistics (ONS). The growth was slower than analysts’ expectations and a significant drop from the 0.5% growth seen during April and June, the ONS said.
Economists surveyed by Reuters and the Bank of England had forecast an expansion of 0.2% for the UK, slowing from the rapid growth seen over the first half of 2024 when the economy was rebounding from a brief recession.
Reacting to the numbers, Chancellor Rachel Reeves said she was not satisfied. “I want growth to be stronger, to come sooner, and also to be felt by families right across the country”.
Japan’s economy grew by an annualised 0.9% over the July-September quarter, government data said on Friday. That was slower than the previous three months due to weaker capital spending, but an unexpected increase in consumption was a boost.
Recent resistance for the GBP rally could give way to a further correction this week if the data supports the Japanese yen.
