Category: GBPJPY

Fundamental / Economic Backdrop (short term) GBP/JPY remains primarily driven by UK–Japan yield differentials, Bank of England (BoE) vs Bank of Japan (BoJ) policy expectations, and global risk sentiment. Key fundamental drivers Bank of England (BoE):UK inflation has moderated but remains structurally elevated compared with Japan. The B…

Fundamental / Economic Backdrop (short term) GBP/JPY is currently influenced by the opposing macro-forces of the British pound (GBP) and Japanese yen (JPY): United Kingdom (GBP drivers) UK fiscal policy credibility has improved following the recent budget cycle, reducing some macro risk premium attached to GBP. However, markets ex…