Select Language

GBP/JPY trades above 194.00 after paring recent losses

Breaking news

GBP/JPY trades above 194.00 after paring recent losses

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.05.30 17:00
GBP/JPY trades above 194.00 after paring recent losses

update 2025.05.30 17:00

  • GBP/JPY holds losses as the Japanese Yen advances, driven by stronger Tokyo's core inflation.
  • The JPY gained support amid increased safe-haven demand after the US appeals court issued a decision blocking Trump tariffs.
  • The International Monetary Fund increased the UK GDP growth forecast for the current year to 1.2% from 1.1%.

GBP/JPY extends its losses for the second successive session, trading around 194.00 during the European hours on Friday. The Japanese Yen (JPY) appreciates against its peers, weighing on the currency cross, after Tokyo's core inflation posted a stronger-than-expected data, reinforcing the odds of the Bank of Japan's (BoJ) 25 basis point rate hike in July.

On Friday, the Tokyo Consumer Price Index (CPI) increased 3.4% year-over-year in May, slightly softer than the previous 3.5% rise. Meanwhile, Tokyo Core CPI excluding Fresh Food came in at 3.6% YoY, following a 3.4% increase in April. The index has surpassed median market forecasts for a 3.5% gain.

The JPY also received support from the safe-haven flows after the US Court of Appeals for the Federal Circuit in Washington, on Thursday, temporarily allowed Trump's tariffs to take effect, holding a decision by a three-judge panel at the Court of International Trade in Manhattan.

On Wednesday, the federal court condemned Trump's usage of the Carter-era International Emergency Economic Powers Act (IEEPA) to justify his international agenda, quoting it as exploitation of the president's authority. The federal court found that Trump exceeded his authority in imposing broad import tariffs and declared the executive orders issued on April 2 unlawful.

The downside of the GBP/JPY cross could be restrained as the Pound Sterling (GBP) may receive support as the International Monetary Fund (IMF) raised the United Kingdom (UK) Gross Domestic Product (GDP) growth forecast for the current year to 1.2% from 1.1%.

The GBP also gains from the weakening of the probability of the Bank of England (BoE) reducing interest rates again in the June policy meeting. The hotter-than-expected UK Consumer Price Index (CPI) and a robust growth in the UK Retail Sales data for April weakened the dovish bets surrounding the Bank of England's (BoE) policy outlook.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.


Date

Created

 : 2025.05.30

Update

Last updated

 : 2025.05.30

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Gold plunges below $3,300 as risk appetite surges on China trade deal, Middle East diplomacy

Gold price tumbled over 1.50% on Friday amid an improvement in risk appetite, driven by several factors.
New
update2025.06.28 02:40

EUR/USD hits multi-year highs as USD struggles despite hotter PCE print

The Euro (EUR) climbs for an eighth consecutive day against the US Dollar (USD) on Friday, as the Greenback remains under pressure amid a combination of political and economic headwinds.
New
update2025.06.28 01:44

Tensions on the Copper market - Commerzbank

According to the International Copper Study Group, the Copper market slipped from a supply surplus to a supply deficit of 50 thousand tons in April, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
New
update2025.06.28 01:34

USD/JPY edges higher as US core PCE rises and risk-on sentiment reduces demand for the Yen

The Japanese Yen (JPY) is weakening against the US Dollar (USD) on Friday as markets weighed fresh inflation figures and a shift in risk appetite.
New
update2025.06.28 01:04

GBP/USD dips from 1.3770 high as US PCE, sentiment data lift Dollar

The GBP/USD retreats by over 0.10% after hitting a near four-year high of 1.3770 on Thursday, dipping to 1.3700 as the US Dollar recovers some ground following the release of the US Core Personal Consumption Expenditures (PCE) Price Index for May.
New
update2025.06.28 00:39

EUR/JPY rally continues as market eyes break above 170.00

The Euro (EUR) strengthens against the Japanese Yen (JPY) on Friday, with the EUR/JPY pair climbing toward levels not seen since July 2024.
New
update2025.06.27 23:54

Dollar Index remains weak as core PCE inflation rises, Personal spending fall

The US Dollar Index (DXY) is nearing 97.00 support as investors digest the latest batch of inflation data released out of the United States.
New
update2025.06.27 22:56

NZD/USD extends winning streak, nearing fresh year-to-date highs

The New Zealand Dollar (NZD) extends its winning streak against the US Dollar (USD) for the fifth straight session on Friday, buoyed by broad-based Greenback weakness.
New
update2025.06.27 22:04

Gold suffers another setback following a US-China trade truce, ahead of PCE inflation report

Gold (XAU/USD) is suffering another setback after reports telling that China and the United States have reached a trade deal.
New
update2025.06.27 21:19

Fed's Kashkari: The Fed might cut rates twice this year

The President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, noted that he was sticking to his view that cooling inflation would allow the Fed to cut its policy rate twice that year, beginning in September.
New
update2025.06.27 21:17

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel