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GBP/JPY RISES TO NEAR 189.00 DESPITE A DOWNBEAT UK INFLATION REPORT

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  • GBP/JPY gains ground despite lower-than-expected Consumer Price Index data from the United Kingdom.
  • UK Consumer Price Index rose at 2.2% YoY in July, against the expected 2.3% growth.
  • The downside of the Yen could be limited due to safe-haven flows amid rising Middle-East tensions.

GBP/JPY extends its winning streak for the third consecutive session, trading around 189.00 during the early European session on Wednesday. This upside came despite a lower-than-expected Consumer Price Index (CPI) report released by the United Kingdom (UK) Office for National Statistics (ONS), which has increased the likelihood of interest-rate cuts by the Bank of England (BoE).

In July, the UK Consumer Price Index (CPI) increased by 2.2% year-on-year, up from 2.0% previously. This reading fell short of the market expectation of 2.3% growth, moving slightly above the Bank of England’s (BoE) 2.0% target.

Meanwhile, Core CPI, which excludes volatile food and energy items, rose by 3.3% year-on-year, down from 3.5% previously and below the market consensus of 3.4%. On a monthly basis, CPI decreased by 0.2%, following a 0.1% increase in June.


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