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.
On Thursday, BoJ Deputy Governor Shinichi Uchida highlighted the need for financial institutions and authorities to be prepared for sudden deposit outflows due to digitalization and technological advances.
BoJ’s Uchida also noted the growing presence of non-bank financial institutions, which now account for nearly half of global financial intermediation. As the relationship between non-bank financial institutions and the banking sector strengthens, any deterioration in the non-bank sector could ripple through the entire financial system via market channels.
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.35% | 0.33% | 0.27% | 0.05% | 0.23% | 0.31% | 0.29% | |
EUR | -0.35% | -0.02% | -0.10% | -0.30% | -0.12% | -0.05% | -0.06% | |
GBP | -0.33% | 0.02% | -0.06% | -0.29% | -0.11% | -0.03% | -0.04% | |
JPY | -0.27% | 0.10% | 0.06% | -0.21% | -0.03% | 0.01% | 0.04% | |
CAD | -0.05% | 0.30% | 0.29% | 0.21% | 0.19% | 0.26% | 0.25% | |
AUD | -0.23% | 0.12% | 0.11% | 0.03% | -0.19% | 0.08% | 0.07% | |
NZD | -0.31% | 0.05% | 0.03% | -0.01% | -0.26% | -0.08% | -0.02% | |
CHF | -0.29% | 0.06% | 0.04% | -0.04% | -0.25% | -0.07% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
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