Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
  • Central Bank
    • BOC
    • BOE
    • BOJ
    • ECB
    • FED
    • PBOC
    • RBA
    • UBS
  • Currency
    • AUD
    • CAD
    • CHF
    • CNY
    • EUR
    • GBP
    • INR
    • JPY
    • RUB
    • SGD
    • USD
  • Foreign Exchange Rate
    • AUD exchange rate
    • CAD exchange rate
    • CHF exchange rate
    • EUR exchange rate
    • GBP exchange rate
    • RMB exchange rate
    • YEN exchange rate
  • Knowledge
  • News
No Result
View All Result
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com
No Result
View All Result
ADVERTISEMENT

GBP/JPY Dips Slightly Amidst Converging Interest Rate Expectations

Elena by Elena
07/04/2024
in BOE, News
blank
ADVERTISEMENT

On Friday, the GBP/JPY currency pair experienced a marginal decrease of a tenth of a percent, hovering just above the 191.000 mark. This slight dip can be attributed to the converging interest rate expectations between the UK and Japan, which have diminished the appeal for investors to hold onto Pound Sterling (GBP) in comparison to the Japanese Yen (JPY), consequently exerting downward pressure on the exchange rate.

In the UK, dwindling inflation expectations have fueled speculation among investors that the Bank of England (BoE) might implement interest rate cuts in June. Such anticipation has weakened the Pound Sterling, as lower interest rates typically lead to a reduction in foreign capital inflows.

Conversely, Japan’s Bank of Japan made headlines during its March meeting by increasing interest rates from an exceedingly low, negative 0.1% level. This decision prompted speculation among investors about whether it marks a singular event or the initiation of a cycle of rate hikes, potentially bolstering the Yen over the long term.

ADVERTISEMENT

In a recent interview with the Asahi Shimbun, Bank of Japan (BoJ) Governor Ueda hinted at the possibility of further interest rate hikes, citing accelerating inflation. Ueda emphasized that the positive outcomes of the Shunto spring wage negotiations are expected to translate into increased wages throughout the summer, subsequently leading to higher consumer prices later in the year.

ADVERTISEMENT
ADVERTISEMENT

Meanwhile, in the UK, the latest Bank of England (BoE) Decision Maker Panel (DMP) survey for February revealed a cooling trend in selling prices and wage inflation anticipated by most firms over the next year. Selling price expectations eased to 4.1% from 4.3%, marking the lowest reading in over two years, while wage growth expectations softened to 4.9% on a three-month moving average basis from 5.2% in February.

Bank of England Governor Andrew Bailey’s recent comments regarding market expectations for two or three rate cuts this year have further fueled speculation that the BoE might indeed implement rate cuts in June.

Additionally, soft Services PMI data for March, released on Thursday, has influenced the UK’s economic outlook, providing further rationale for potential interest rate cuts by the BoE. The UK Services PMI fell to 53.1, missing expectations and the previous reading of 53.4.

However, amidst this mixed economic backdrop, not all UK data has been negative. A recent report by the UK’s largest building society, Nationwide, revealed the first rise in house prices since January 2023, as reported by the Guardian. This development follows BoE lending data showing a surprise increase in Mortgage Approvals, reaching their highest level since September 2022 in February.

Tags: erninflationinterest rateskes
Previous Post

Fed’s Logan: Too early to think about rate cuts in light of upside risks to inflation

Next Post

USD/CAD Surges to Four-Month High Amid Divergent Labor Market Data from US and Canada

Elena

Elena

Elena, a seasoned foreign exchange trader with a proven track record in the dynamic world of currency markets, brings a wealth of expertise and professionalism to the financial realm. With an extensive background spanning over a decade, she has honed her skills in analyzing global economic trends and implementing strategic trading solutions. Known for her meticulous attention to detail and analytical prowess, Elena has navigated through volatile market conditions with finesse, consistently delivering impressive results for her clients. Her comprehensive understanding of macroeconomic indicators, coupled with a keen awareness of geopolitical events, allows her to make informed decisions that optimize trading portfolios. Elena's commitment to staying ahead of the curve is evident in her continuous pursuit of knowledge and mastery of cutting-edge trading technologies. Her disciplined approach to risk management ensures prudent investment strategies, instilling confidence in both colleagues and clients alike.

Related Posts

UAE Central Bank Holds Rates
Foreign Exchange Rate

UAE Central Bank Holds Rates

13/05/2025
US Economy Under Fire?
Currency

US Economy Under Fire?

13/05/2025
Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry
News

Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry

13/05/2025
Meta Delivers Great News to Nvidia Investors?
News

Meta Delivers Great News to Nvidia Investors?

13/05/2025
Financial News Highlights: Top Stories at 4 Pm Et on Wednesday?
News

Financial News Highlights: Top Stories at 4 Pm Et on Wednesday?

13/05/2025
Hot Stocks: Anz, Orica, Neuren
News

Hot Stocks: Anz, Orica, Neuren

13/05/2025
blank
News

USD/CHF Pulls Back as Dollar Softens Ahead of Key U.S. Inflation Data

13/05/2025
blank
News

INR Weakens Amid Trade Optimism, Geopolitical Tensions

13/05/2025
Basic knowledge of K chart
News

GBP/USD Rises on Trade Deal Hopes, BoE Optimism

13/05/2025
Next Post
USD/CAD Pair Faces Headwinds Amidst US Dollar Decline

USD/CAD Surges to Four-Month High Amid Divergent Labor Market Data from US and Canada

blank

U.S. Nonfarm Payrolls data upsets Pound Sterling

What Is a Stable Coin Pegged to the Swiss Franc?

Current CHF Exchange Rate: What is CHF to HKD?

Tags

ALL ARS ats bam Bank of Korea bef bob Central Bank of Canada Central Bank of Russia cop cup dem Digital Currency Digital RMB Dollar Index dop eek energy crisis ern esp etb Fed rate hike financial markets forex trading gel ghs huf ils IMF inflation inr interest rates irr isk itl kes lak lyd monetary policy mop mro mur myr Raise Interest Rates Swiss National Bank

Recent Posts

UAE Central Bank Holds Rates
Foreign Exchange Rate

UAE Central Bank Holds Rates

by changzheng49
13/05/2025

In a significant move that aligns with the United States Federal Reserve's latest monetary policy stance, the Central Bank of...

US Economy Under Fire?

US Economy Under Fire?

13/05/2025
Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry

Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry

13/05/2025
Meta Delivers Great News to Nvidia Investors?

Meta Delivers Great News to Nvidia Investors?

13/05/2025
Financial News Highlights: Top Stories at 4 Pm Et on Wednesday?

Financial News Highlights: Top Stories at 4 Pm Et on Wednesday?

13/05/2025
Hot Stocks: Anz, Orica, Neuren

Hot Stocks: Anz, Orica, Neuren

13/05/2025
blank

USD/CHF Pulls Back as Dollar Softens Ahead of Key U.S. Inflation Data

13/05/2025
blank

INR Weakens Amid Trade Optimism, Geopolitical Tensions

13/05/2025

News

Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry

Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry

13/05/2025
Meta Delivers Great News to Nvidia Investors?

Meta Delivers Great News to Nvidia Investors?

13/05/2025
Financial News Highlights: Top Stories at 4 Pm Et on Wednesday?

Financial News Highlights: Top Stories at 4 Pm Et on Wednesday?

13/05/2025
Hot Stocks: Anz, Orica, Neuren

Hot Stocks: Anz, Orica, Neuren

13/05/2025
blank

USD/CHF Pulls Back as Dollar Softens Ahead of Key U.S. Inflation Data

13/05/2025
blank

INR Weakens Amid Trade Optimism, Geopolitical Tensions

13/05/2025
Foreign Exchange_Forex Market_Forex Trading_Forex Investment - mydayfinance.com

MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.【Contact us: [email protected]】

Recent Posts

  • UAE Central Bank Holds Rates 13/05/2025
  • US Economy Under Fire? 13/05/2025
  • Fitch: Uae’s New Islamic Finance Strategy to Boost Sukuk Industry 13/05/2025
  • Meta Delivers Great News to Nvidia Investors? 13/05/2025
  • Financial News Highlights: Top Stories at 4 Pm Et on Wednesday? 13/05/2025

Tags

ARS ats Bank of Korea bam bef bhd bob Central Bank of Brazil CAD to CNY Central Bank of Canada Central Bank of Russia CHF to CNY cop cup dem Digital Currency Dollar Index dop eek ern esp financial markets forex trading gel ghs

Useful Links

Home

ABOUT US

Disclaimer

Privacy Policy

Article sitemap

Forex Trading Tips

Copyright © 2024 mydayfinance.com

No Result
View All Result
  • Home
  • Central Bank
  • Currency
  • Foreign Exchange Rate
  • News

Copyright © 2024 mydayfinance.com MydayFinance (www.mydayfinance.com) is a comprehensive foreign exchange industry website, providing global users with 24-hour comprehensive and timely foreign exchange market information, foreign exchange rate real-time query, foreign exchange rate conversion and other content.