GBP JPY

The UK's 1-month OIS suggests ~48% chance of a 25bp cut from the BOE next month, which means today's inflation report is likely a key driver for GBP/USD on monetary policy expectations.

Soft US inflation and stability in the Fed interest rate outlook point to an ideal environment for renewed upside in Japanese yen FX crosses, assuming prevailing conditions don't shift meaningfully. GBP/JPY and NZD/JPY are two pairs on the radar.

It was another strong week for the British Pound as Core CPI came out well-above the expectation, leading to a 1.2750 test in GBP/USD and a 200.00 test in GBP/JPY.

Both gold and GBP/JPY are showing signs of stability around key support levels to suggest they could extend their bounce. But with AUD/USD rising for four days on anticipation of a hawkish RBA, whether AUD/USD can extend its rally beyond resistance is up for question.

The Bank of England hosts a rate decision on Thursday and GBP/USD has pushed back-above the 1.2500 handle. GBP/JPY slid after touching the 200.00 mark for the first time since 2008, and EUR/GBP is showing bearish breakdown potential with two different technical formations.

The long-awaited results from the Japan’s spring wage negotiations are winding down, and the results are generally what the BOJ wanted to see to exit its ultra-accommodative monetary policy. See the key levels to watch on USD/JPY, EUR/JPY, and GBP/JPY!

The UK spring budget is set to be released tomorrow. And if GBP/USD follows its general pattern around this budget, it could be in for a tough few days - starting from today.

USD/JPY is consolidating while EUR/JPY and GBP/JPY remain in healthy uptrends.

Tonight’s Bank of Japan rate decision will be widely-watched for clues of any possible changes on the horizon. The BoJ knows this, so the big question is whether they touch the topic tonight or wait until 2024.

The Bank of England seems an outlier at this point as they remain one of the more hawkish Central Banks and GBP/USD is driving to a fresh three-month high after the FOMC and BOE rate decisions.

The Japanese yen has finally found some much needed support this week. It is all to do with the falls in global bond yields, and the unwinding of carry trades. US yields slumped earlier this week after US CPI fell more than expected, cementing expectations that the Fed (and other central banks) will no longer raise rates further

The big story this week has been on the inflation front, with CPI in the US and UK both falling faster than expected, cementing expectations that the Fed and other central banks will no longer raise rates further. With a couple of other key US economic pointers also coming in weaker this week, such as industrial production and jobless claims data, as well as a sharp drop in oil prices, this has led to speculation that the Fed may start cutting rates sooner than expected in 2024

USD/JPY remains by far the most bullish of the major yen crosses...

It’s been a big week for global markets and it’s not over yet, with the Bank of Japan rate decision scheduled for later today.

With EUR/JPY and GBP/JPY testing critical support, price action over the next 30 hours will go a long way toward determining if the year-to-date trends extend or end from here...

Today’s latest data once again highlighted the growing threat of stagflation in Europe, with UK economic output and eurozone industrial production both falling more than expected. High levels of inflation and low growth, combined with downbeat business and consumer sentiment, and not to mention rising borrowing costs, all make for a tough economic climate for investors to navigate through.