GBP/JPY remains under pressure ahead of a speech by BoE Governor Andrew Bailey scheduled for Thursday.
The Pound Sterling may gain support due to increasing concerns among BoE officials about persistent price pressures.
BoJ’s Uchida urged financial institutions and authorities to be prepared for sudden deposit outflows due to digitalization and technological advancements.
GBP/JPY edges lower after posting gains in the previous session, hovering around 197.50 during European trading hours on Thursday. Traders await a speech from Bank of England (BoE) Governor Andrew Bailey at the annual financial and professional services dinner later in the day.
However, the downside of the Pound Sterling (GBP) could be restrained due to rising concerns among BoE officials about persistent price pressures. On Wednesday, BoE Monetary Policy Committee external member Catherine Mann participated in a panel at the BNP Paribas Global Market Conference, where she noted that monetary policy is affecting inflation more quickly than economic theory suggests. This allows the central bank to hold off on significant interest rate cuts for now.
The Japanese Yen (JPY) continues to face pressure as political uncertainty in Japan raises concerns about the Bank of Japan's (BoJ) rate-hike plans. Additionally, worries over the potential impact of US President-elect Donald Trump's proposed trade tariffs on the Japanese economy are further undermining the JPY.
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