- GBP/JPY comes under strong bearish pressure and falls to multi-week lows on Thursday.
- The Bank of England kept its interest rate at 5.25% in a split vote.
- The Bank of Japan will announce its monetary policy decision early on Friday.
GBP/JPY lost ground during the European session on Thursday and fell to its lowest level since early August at 180.83 before recovering to the 181.50 area. At the time of writing, the pair was down 0.9% on the day, standing at 181.54.
Following the September monetary policy meeting, the Bank of England (BoE) decided to keep the interest rate unchanged at 5.25%. Although investors expected the BoE to raise the interest rate by 25 basis points, weak UK inflation data revived expectations of no change. “Inflation has fallen sharply in recent months, we believe it will continue to do so,” the BoE stated in its monetary policy statement.
However, the immediate reaction saw the British Pound suffer heavy losses against its main rivals. The GBP/USD pair is now down 0.6% on the day and EUR/GBP is up 0.4% to 0.8670, highlighting the negative impact of the BoE policy decision on the Pound.
According to Reuters, the probability that the BoE will raise rates by 25 basis points in November fell to 64% from 81% before the rate decision.
Pound sterling quote today
The following table shows the percentage change of the British Pound (GBP) against the main currencies today.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.06% | 0.53% | 0.22% | 0.47% | -0.27% | 0.13% | 0.65% | |
| EUR | -0.08% | 0.45% | 0.14% | 0.38% | -0.35% | 0.06% | 0.57% | |
| GBP | -0.48% | -0.45% | -0.30% | -0.06% | -0.79% | -0.35% | 0.12% | |
| CAD | -0.22% | -0.16% | 0.31% | 0.24% | -0.50% | -0.09% | 0.42% | |
| AUD | -0.45% | -0.40% | 0.08% | -0.23% | -0.72% | -0.32% | 0.19% | |
| JPY | 0.25% | 0.34% | 0.81% | 0.48% | 0.73% | 0.41% | 0.91% | |
| NZD | -0.12% | -0.05% | 0.42% | 0.09% | 0.36% | -0.38% | 0.52% | |
| CHF | -0.66% | -0.57% | -0.12% | -0.44% | -0.20% | -0.92% | -0.52% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
During the Asian session on Friday, the Bank of Japan will announce its monetary policy decision. Investors expect the BoJ to keep its monetary policy unchanged, including the yield curve control strategy.
GBP/JPY technical levels to watch
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
