GBP/JPY holds positive ground above 182.50 ahead of UK GDP
|- GBP/JPY gains momentum above the mid-182.00s on Friday ahead of the UK key event.
- Japan’s Tokyo CPI eased to 2.8%% vs. 2.9%; excluding Fresh Food, Energy came in at 3.8% vs. 4.0% prior.
- Traders await the UK’s Gross Domestic Product (GDP) data for Q2.
The GBP/JPY cross holds positive ground for three straight days during the Asian session on Friday. Meanwhile, the cross currently trades near 182.57, gaining 0.22% on the day.
Earlier Friday, the Statistics Bureau of Japan reported that the headline Tokyo Consumer Price Index (CPI) for September eased to 2.8 YoY from 2.9% in the previous reading. Meanwhile, the Tokyo CPI ex Fresh Food, Energy came in at 3.8% YoY from 4.0% in August. Additionally, Tokyo CPI ex Fresh Food eased from 2.8% to 2.5% for the said month compared to analysts’ estimations of 2.6%. Japan's inflation rate continues to exceed the Bank of Japan's (BoJ) 2% target, but the central bank is anticipated to keep its ultra-easy monetary policy in place until it is sure that inflation remains above its minimum target.
On Thursday, Finance Minister Shunichi Suzuki reiterated that he won't rule out any steps to respond to disorderly FX moves. Traders turn cautious amid the fear of intervention as the level of 150.00 would prompt Japanese authorities to intervene as they did last year.
On the UK’s front, market players await the UK’s Gross Domestic Product (GDP) for the second quarter for fresh impetus. The quarterly and yearly growth number is expected to remain at 0.2% and 0.4%, respectively. Following the Bank of England's surprising pause in its rate-hiking cycle earlier this month, the initial market response to a positive surprise is more likely to remain limited.
Looking ahead, market participants will keep an eye on the UK’s Gross Domestic Product (GDP) for Q2. Traders will take cues from these figures and find trading opportunities around the GBP/JPY cross.
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