GBP/JPY holds losses around 193.00 after the release of weaker UK economic figures

• GBP/JPY remains subdued following the disappointing UK data for October.
• UK Gross Domestic Product contracted 0.1% MoM in October, against the expected increase of 0.1%.
• The JPY receives upward support from safe-haven flows amid a slight deterioration in global risk sentiment.

GBP/JPY continues to lose ground after the release of disappointing key economic data from the United Kingdom (UK), trading around 193.00 during the European hours on Friday. Office for National Statistics reported that the UK Gross Domestic Product (GDP) contracted 0.1% month-over-month in October, against the expected increase of 0.1%.

Meanwhile, Industrial Production fell 0.6% MoM following a previous decline of 0.5%, against the expected 0.3% rise. The monthly Manufacturing Production declined 0.6% in October, against the expected 0.2% increase and September’s 1% decline.

The downside risks for the British Pound (GBP) seem limited due to the increased likelihood that the Bank of England (BoE) will adopt a slower pace of policy easing compared to other central banks in Europe and North America.

The Japanese Yen (JPY) receives upward support from safe-haven flows due to a slight deterioration in the global risk sentiment, along with geopolitical tensions and trade war fears. However, this upside of the JPY is restrained due to the growing market conviction that the Bank of Japan (BoJ) will not raise interest rates at its upcoming policy meeting next week.

On Friday, the Bank of Japan's Tankan Large Manufacturing Index rose to the reading of 14 in the fourth-quarter period, marking the highest reading since March 2022. Furthermore, firms expect inflation to rise 2.4% a year from now.