GBP/JPY tumbles below 192.00 as Shigeru Ishiba wins LDP leadership race run-off

• GBP/JPY attracts some sellers to 191.85 in Friday’s early European session. 
• Former defense minister Shigeru Ishiba won the LDP leadership race run-off and will be Japan's next prime minister. 
• The BoE is expected to deliver another interest rate cut in any of its two policy meetings remaining this year. 

The GBP/JPY cross faces some selling pressure to around 191.85, snapping the three-day winning streak during the early European session on Friday. The winning of former defense minister Shigeru Ishiba in the Liberal Democratic Party's (LDP) leadership race run-off boosts the Japanese Yen (JPY) and creates a headwind for the cross. 

Japan’s ruling party holds its leadership election on Friday and the former defense minister Shigeru Ishiba won the LDP leadership race run-off. The Japanese Yen (JPY) gains traction in an immediate reaction to the outcome as Ishiba received 215 votes in the run-off while Sanae Takaich only got 194 votes. 

The Tokyo core Consumer Price Index (CPI), which excludes volatile fresh food costs, rose 2.0% in September from the previous year, the Statistics Bureau of Japan showed Friday. This figure matched the Bank of Japan’s (BoJ) target and the median market forecast. The headline Tokyo Consumer Price Index (CPI) increased 2.2% YoY in September, compared to a 2.6% rise in August. The Tokyo CPI inflation data indicates the Japanese economy is making progress in meeting the criteria for further interest rate hikes, which further boosts the JPY. 

On the other hand, the dovish comments from the Bank of England (BoE) Governor Andrew Bailey might weigh on the Pound Sterling (GBP). Bailey stated that the UK central bank should be able to lower interest rates gradually as it gains confidence that inflation will remain close to its 2% target. Economists expect the BoE to deliver one interest rate cut in any of its two policy meetings remaining this year.