GBP/JPY climbs to 189.00 amid the weakness of JPY; The bullish capabilities seem limited
- GBP/JPY rebounds after re -testing the lowest level in the number of work times at the beginning of a new week.
- The strong recovery is carried out by the appearance of the sale around JPY.
- BoJ-Boe’s contrasting expectations may determine any other gains for the cross.
GBP/JPY CROSS stages have recovered from Goodish Intday from the 187.00 neighborhood, or its lowest level since September 2024 re -tested earlier this Monday and depends on its rise during the first half of the European session. Immediate prices are offered to the brand of 189.00 in the last hour, and it seems that it has cut a three -day loss chain.
US President Donald Trump’s new introductory threats refresh fears that Japan will also be a goal in the end of the new American drawings, which in turn undermines the Japanese yen (JPY) and demands some short cover about GBP/JPY CROSS. However, Hawkish Bank of Japan (BOJ) is expected and anxious about a global trade war that prevents landmarks from putting aggressive bets around a safe JPY.
Kazuhiro Masaki, General Manager of the Department of Monetary Affairs at the Bouzi Investment Bank, said last Thursday that the central bank will continue to raise interest rates if the basic inflation accelerates its 2 % goal as expected. This comes at the top of the data that shows that the real fees modified in inflation in Japan have risen for the second month in a row and support the case for further emphasizing by the Japanese Central Bank.
This represents a great contrast compared to the dark Bank of England (BOE) expectations, which in turn should contribute to the mode of the GBP/JPY cross. The Central Bank of the United Kingdom has reduced the standard interest rate by 25 basis points last week and reduced growth forecast for 2025. Moreover, the Andrew Andrew Billy Governor’s ruler said the central bank expects further discounts in prices this year.
In the absence of any relevant economic data, the main background mentioned above makes it wisdom waiting for a strong purchase by purchasing before confirming that the GBP/JPY cross has reached the bottom in the short term. Merchants are now looking at the speech of Andrew Andrew Billy Governor on Tuesday, which will play a major role in influencing the British pound (GBP) and provides a new impetus.
Stering questions and answers to the pound
The British pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most trading of foreign unit (FX) in the world, as it represents 12 % of all transactions, with an average of 630 billion dollars a day, according to 2022 data. Their main trading pairs are GBP/USD, also known as “Cable”, Which represents 11 % of FX, GBP/JPY, or “dragon” as is known by merchants (3 %), and EUR/GBP (2 GBP (2 %). The pound sterling was released by the Bank of England (Bank of England).
The only most important factor that affects the value of the British pound is the monetary policy decided by the Bank of England. The Bank of England is based on its decisions on whether it has achieved its primary goal of “stability in prices” – a fixed inflation rate of about 2 %. Its primary performance to achieve this is to adjust interest rates. When inflation is very high, the Bank of England will try to make interest by raising interest rates, making it more expensive for people and companies to reach credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to stop their money. When inflation decreases significantly, economic growth slows down. In this scenario, the Bank of England will consider reducing interest rates to licensing credit so that companies borrow more to invest in growth generation projects.
Data affects the health of the economy and can affect the value of the pound sterling. Indicators such as gross domestic product, manufacturing, services, and employment can affect the GBP direction. The strong economy is useful for sterling. Not only attracts more foreign investments, but it may encourage the Bank of England to set interest rates, which will enhance the GBP directly. Otherwise, if the economic data is weak, it is possible that the pound sterling will fall.
Issuing another important data for the British pound is the balance of trade. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very desirable exports, its currency will benefit from the additional demand resulting from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
