- GBP/JPY regains 192.00 when Japan loses the strength of potential US-Japan commercial talks.
- Akazawa in Japan is to visit Washington this week.
- Investors are waiting for CPI in Great Britain for fresh tips on the prospect of monetary policy Boe.
The GBP/JPy pair attracts offers nearly 192.00 and flattens around 193.50 in the North American trade situation on Tuesday. The cross reflects when the Japanese Jen (JPy) loses his strength after Tokyo announced a meeting with Washington this week for trade talks in the third round.
Earlier on the same day, the Japanese Information Agency Kyodo announced that the highest commercial negotiator Ryosei Akazawa would visit Washington for professional discussion this week. Later in the European session, the Information Agency also announced that Japan is thinking about lower tariffs in the USA and does not demand release.
Meanwhile, the Sterling pound (GBP) calmly ahead of the consumer price indicator in the UK (Great Britain) in April, which will be issued on Wednesday. According to estimates, the British CPI headline increased at a solid rate of 3.3%, compared to 2.6% in March. The basic CPI – which removes unstable elements such as food, energy, alcohol and tobacco – accelerated to 3.6% from earlier release 3.4%.
Signs of sizzling inflation data in Great Britain would discourage officials of the Bank of England (Boe) from re -lowering interest rates at the June meeting. Boe reduced the loan rates at 25 base points (BPS) to 4.25% and directed a “gradual and cautious” approach to the expansion of monetary policy.
Meanwhile, Boe chief economist, HUW PIG. The pill stated in European commercial hours that “inflation pressure indicators give me a cause for concern.” Pill was one of the two boe decision makers who voted in favor of leaving the interest rates unchanged.
Frequently inflicted by Japanese Jena
Japan Japan (JPY) is one of the most rotating currencies in the world. Its value depends widely by the results of the Japanese economy, but more specifically by Bank of Japan Policy, the difference between the profitability of Japanese and American bonds or risk moods among investors.
One of the mandates of the Bank of Japan is currency control, so its movements are crucial for Jen. Boj sometimes intervened directly on currency markets, generally to reduce the value of Jen, although it often refrains from doing it because of the political fears of the main trading partners. BOJ Ultra-Loose Monetary policy in the years 2013–2024 meant that Jen was absorbed in relation to the main currency peers due to the growing discrepancy of policy between the Bank of Japan and other main central banks. Recently, the gradual unwinding of this ultra-losing policy gave some support to Jen.
Over the past decade, the attitude of the BOJ regarding the sticking to the ultra-losing monetary policy has led to the discrepancy of politics with other central banks, especially among the US Federal Reserve. This confirmed the expansion of the difference between 10-year bonds in the USA and Japanese, which favored the American dollar in relation to Japanese yen. The decision Bij in 2024, about the gradual abandonment of ultra-losing policy, combined with interest cuts at other main central banks, narrows this difference.
Japanese yen is often seen as a secure investment. This means that in times of market stress, investors more often place their money in Japanese currency due to its alleged reliability and stability. Turbulent times will probably strengthen the value of Jen in relation to other currencies perceived as more risky to invest.
