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GBP/JPY Recovers Above 158.50 Before UK Employment And Japan GDP Data
GBP/JPY recovered from 158.50 but remains in the woods. Academician Kazuo Ueda appears likely to lead the BoJ novel. UK labor cost index increases will worsen BoE problems.
In early Tokyo, GBP/JPY rose beyond 158.50. After Friday's dramatic swings, the cross is expected to shrink volatility. The Japanese Yen experienced tremendous volatility as the prospects for the appointment of scholar Kazuo Ueda as the next Governor of the Bank of Japan (BoJ) increased.
The Japanese Cabinet is expected to pick Kazuo Ueda as the next BoJ Governor once Haruhiko Kuroda leaves in April, according to the Nikkei Asian Review. The Japanese government will select ex-FSA Chief Himino and BoJ Executive Director Shinichi Uchida for Deputy BoJ Governor, according to sources.
The news caused the Japanese Yen to rise perpendicularly, but Kazuo Ueda's statement that the existing monetary policy was suitable ended the advance. Japan's Prime Minister Fumio Kishida has reiterated that the administration will explore ending the decade-long expansionary strategy under new BoJ leadership. A contrasting monetary policy position from scholar Kazuo Ueda dimmed prospects of exiting accommodating monetary policy.
Investors are watching Tuesday's Japan GDP (Q4) report. Economic data grows 2.0% annually and 0.5% quarterly.
UK investors await employment data for Pound Sterling direction. Three-month unemployment remains at 3.7%. Average Earnings without incentives are predicted to rise 6.5%. The Bank of England (BoE), which is fighting higher inflation, may face more challenges.
UK FM Jeremy Hunt says, “If we keep to our objective to halve inflation this year, we can be confident of having amongst the finest prospects for growth of anyplace in Europe.”
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