- The GBP/JPY bounces from the minimum daily while the inflation figures of the United Kingdom higher moderate the betting of the BOE rates.
- BOJ rates rise bets support JPY in the middle of a safe refuge demand and limit the crossing.
- A rupture is needed below the 200 -day SMA to support the prospects for new losses.
The GBP/JPY crossing cuts part of its modest intradic losses after the publication of inflation figures to the United Kingdom higher than expected, although it lacks follow -up purchases. Cash prices are currently negotiated around the 193.20 region, with a fall of more than 0.15% in the day in the middle of a Japanese yen (JPY) in general stronger.
The data published by the National Statistics Office (ONS) of the United Kingdom on Wednesday showed that the General Consumer Price Index (CPI) general jumped from 2.6% seen in the month prior to 3.5% in April, the highest level in more than a year. In addition, the annual underlying IPC, which excludes volatile energy and food prices, rose 3.8% compared to 3.4% in March. The readings were well above the estimates of consensus and the objective of 2.0% in the medium term of the Bank of England (BOE), which forced investors to reduce their expectations of more features of rates in 2025 and to boost the pound sterling (GBP).
However, operators are still valuing the possibility that the United Kingdom Central Bank reduces indebtedness costs at least once before the end of the year. This marks a strong divergence compared to the growing acceptance that the Bank of Japan (BOJ) will raise interest rates in the midst of fears of broader price increases and rooted in Japan. In addition, the demand for safe shelter, backed by renewed commercial tensions between the US and China and the persistent geopolitical risks, benefits the JPY. This, in turn, maintains a limit in the intra-dialy recovery of the GBP/JPY torque of around 40 pips from the 192.85-192.80 region.
However, the mixed fundamental background is prudent to expect a strong sales tracking below the simple mobile average (SMA) of 200 days before positioning itself for an extension of the recent setback from a maximum of more than four months reached last week.
Economic indicator
Consumer Price Index (Yoy)
The IPC publishes it National Statistics and measures prices a basket of goods and services bought by households for consumption. The CPI is the main indicator to measure inflation and changes in consumption trends. A greater result than expectations is bullish for the pound, while a minor reading is bassist.
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Last publication:
MIÉ MAY 21, 2025 06:00
Frequency:
Monthly
Current:
3.5%
Dear:
3.3%
Previous:
2.6%
Fountain:
Office for National Statistics
The Bank of England has the task of maintaining inflation, measured by the main consumer price index (CPI), in about 2%, which gives the monthly publication its importance. An increase in inflation implies an increasingly fast increase in interest rates or the reduction of bond purchase by the BOE, which means squeezing the offer of pounds. On the contrary, a drop in the rhythm of price increases indicates a more flexible monetary policy. A higher result than expected tends to be bullish for the GBP.
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.
