- The GBP/JPY loses ground after the publication of softest economic data in the United Kingdom on Friday.
- The Gross Domestic Product (GDP) of the United Kingdom fell 0.1% in May, challenging market expectations of an expansion of 0.1%.
- The Japanese Yen is under pressure in the midst of growing commercial tensions that amplify the risks for Japan’s economic perspectives.
The GBP/JPY slides down as the economy of the United Kingdom (United Kingdom) contracts in May, remaining in positive territory and quoting around 199.20 during Friday’s Asian hours. The Gross Domestic Product (GDP) of the United Kingdom decreased 0.1%, after a 0.3%drop in April, against the market consensus of a 0.1%growth.
The Services Index (May) reached 0.4% 3m/3m compared to 0.6% in April. Meanwhile, the monthly industrial and manufacturing production stood at -0.9% and -1%, respectively, in May. Both readings were below market expectations.
The GBP/JPY crossing could lose more ground as the sterling pound (GBP) fights due to the growing economic concerns in the United Kingdom (United Kingdom). The Bank of England (BOE) warned about multiple risks in its report of the Financial Policy Committee (FPC) in the middle of the year on Wednesday.
The FPC Committee said: “The risk of sudden falls in risk assets prices, abrupt changes in asset allocation and a longer collapse in historical correlations remains high.” The Committee highlighted the geopolitical tensions, the global fragmentation of trade and financial markets, and pressures on sovereign debt as responsible for the escalation of economic risks in the United Kingdom.
The GBP/JPY crossing also receives support as Japanese (JPY) faces challenges due to the growing commercial tensions, increasing the risks to Japan’s economy. Japan faces a 25% punitive tariff over all exports to the United States (USA) in the midst of stagnant commercial negotiations between the US and Japan, particularly on the protection of the Japan rice market. Japan’s production price index (IPP), published above this Thursday, hinted that inflationary pressures could be decreasing, which could force the Bank of Japan (BOJ) to avoid increasing interest rates this year.
Economic indicator
Gross Domestic Product (MOM)
The gross domestic product published by National Statistics It is a measure of the total value of all goods and services produced by the United Kingdom. GDP is considered as a broad measure of the economic activity of the United Kingdom. In general terms, an upward trend has a positive effect on the sterling pound, while a decreasing trend is seen as negative (or bassist).
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Last publication:
Old Jul 11, 2025 06:00
Frequency:
Monthly
Current:
-0.1%
Dear:
0.1%
Previous:
-0.3%
Fountain:
Office for National Statistics
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.
