English
GBP/JPY Skids Along The Bottom, Bears Aiming For 181.00
In the second half of Tuesday's trading, the GBP/JPY pair consolidated just above 181.00. Compared to Tuesday's opening bids near 181.80, the Guppy has decreased. Tuesday saw a surge in market risk appetite, but Yen traders are cautious ahead of Japan's inflation data.
The Pound Sterling (GBP) continues to lose ground against the Japanese Yen (JPY), as the GBP/JPY is down nearly 80 pips ahead of Wednesday's trading session. The pair is down nearly 1.3% from last week's high and over 3.0% from its August high of 186.77.
The economic calendar for the Guppy is light during the middle of the week, and traders will be anticipating Thursday's Tokyo Consumer Price Index (CPI) reading and Friday's UK Gross Domestic Product (GDP) figures.
The Bank of Japan (BoJ) is determined to see Japanese inflation remain meaningfully above 2% before removing its ultra-loose monetary policy. The current Japanese interest rate is -0.1%, and despite inflation being above the BoJ's 2% objective, the BoJ is concerned about an inflation collapse.
Investors will closely monitor the September Tokyo CPI reading on Thursday, which was 2.9% for the annualised period ending in August.
Tokyo CPI data is released late Thursday at 23:30 GMT.
Friday will bring an end-of-the-week conundrum for the GBP, with UK GDP figures due out; sluggish economic growth remains a key sticking point for the Bank of England (BoE), and second-quarter UK GDP is expected to remain unchanged at 0.2%.
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