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GBP/JPY is aiming for a two-week high near 169.00 as Japan aims a Cabinet overhaul
GBP/JPY aims to surpass a two-week high at 169.00 as the risk-off profile loses momentum. New leadership in the United Kingdom is attacked for disregarding economic potential. Kishida of Japan is considering reorganizing the Cabinet before the end of the year.
During the Tokyo session, the GBP/JPY pair has extended its rebound and is aiming to shift its business over the 168.00 barrier. The cross is approaching a two-week high near 169.00 as the market sentiment improves. Despite forecasts of a slowing in the Bank of England's rate-hiking pace, the British pound is anticipated to continue its upward trend (BOE).
The street is still debating whether the Autumn Statement has restored confidence and ability in the UK's economic prospects or has worsened the scenario for projections.
Shell, a provider of renewable energy and energy solutions, is rethinking its expansion ambitions in the British energy sector following the announcement of windfall taxes by the incoming UK government. In the long-awaited "memorial service for Trussonomics," Prime Minister Rishi Sunak and Chancellor Jeremy Hunt raised the tax rate from 25% to 35%.
Shell's UK chairman, David Bunch, told the Telegraph that the enlarged levy revealed in the Chancellor's Autumn Statement is causing the business to reevaluate a number of ongoing projects, including North Sea investments and renewable energy programmes.
Economists at UOB have maintained their forecast of a 50 basis point (bps) change in the United Kingdom's interest rate at its December monetary policy meeting. They believe that the BOE still has some work to do, given that Hunt has decided to delay the majority of the fiscal consolidation's painful effects, which means that fiscal policy will do little to combat inflation."
Japan's Prime Minister Fumio Kishida told Mainichi that investors in Tokyo are becoming apprehensive as the Japanese administration plans to reorganize its Cabinet before the end of the year. This may cause a period of volatility in the Japanese yen. On the economic front, investors are anticipating the release of the PMI figures on Thursday. At 50.7, the Jibun Bank Manufacturing PMI is viewed as stable. While Services PMI is anticipated to decrease moderately to 53.1%, it is anticipated that Manufacturing PMI will increase marginally to 54.2%.
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