Select Language

GBP/JPY corrects from 196.00 as upwardly revised Japan's Q1 GDP supports Yen

Breaking news

GBP/JPY corrects from 196.00 as upwardly revised Japan's Q1 GDP supports Yen

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.09 16:57
GBP/JPY corrects from 196.00 as upwardly revised Japan's Q1 GDP supports Yen

update 2025.06.09 16:57

  • GBP/JPY retraces to near 195.65 as the Japanese Yen (JPY) gains against a majority of its peers.
  • According to the revised estimates, the Japanese economy remained flat in the first quarter of the year.
  • Investors await the UK employment data for fresh cues on the BoE's monetary policy outlook.

The GBP/JPY pair retraces to near 195.65 during European trading hours on Monday from the intraday high of 196.00. The pair faces slight selling pressure as the Japanese Yen (JPY) gains after the revised Q1 Gross Domestic Product (GDP) data showed that the economy remained flat.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.22% -0.27% -0.50% -0.09% -0.31% -0.49% -0.22%
EUR 0.22% -0.07% -0.30% 0.11% -0.07% -0.28% -0.02%
GBP 0.27% 0.07% -0.14% 0.18% 0.00% -0.22% 0.05%
JPY 0.50% 0.30% 0.14% 0.42% 0.14% -0.04% 0.17%
CAD 0.09% -0.11% -0.18% -0.42% -0.24% -0.40% -0.13%
AUD 0.31% 0.07% -0.00% -0.14% 0.24% -0.21% 0.06%
NZD 0.49% 0.28% 0.22% 0.04% 0.40% 0.21% 0.27%
CHF 0.22% 0.02% -0.05% -0.17% 0.13% -0.06% -0.27%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

According to the preliminary estimates, the Japanese economy shrank steadily by 0.2%. On an annualized basis, the economy declined at a slower pace of 0.2%, compared to a 0.7% contraction.

Japanese Cabinet Office reported that the GDP growth in the January-March period revised higher on the back of an upward revision in the private consumption data, which accounts for over half of the economy. Households' consumption rose by 0.1%, against a flat performance seen in the flash estimate.

Meanwhile, Japan's Prime Minister Shigeru Ishiba has warned that rising interest rates by the Bank of Japan (BoJ) could weigh on government's spending plans, stating that higher borrowing rates could increase cost of funds. Tokyo's concerns over rising debt cost could force traders to pare bets supporting the BoJ to raise interest rates again this year.

In the United Kingdom (UK) region, investors await the employment data for three months ending April, which will be released on Tuesday. The job market report is expected to show that the ILO Unemployment Rate accelerated to 4.6% from the prior reading of 4.5%. Average Earnings, both Including and Excluding bonuses, grew by 5.5% on year.

Investors will pay close attention to the UK labor market data as it will influence market expectations for the Bank of England's (BoE) monetary policy outlook. The BoE is almost certain to leave interest rates steady at 4.25% in the policy meeting on June 19.

Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.


Date

Created

 : 2025.06.09

Update

Last updated

 : 2025.06.09

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

Silver Price Forecast: XAG/USD advance stalls near $37.00 as holiday lull masks bullish setup

Silver price traded sideways on Friday, remaining virtually unchanged at $36.84, due to thin trading volumes as US markets were closed for a holiday.
New
update2025.07.05 06:32

EUR/USD holds near highs despite tariff jitters, eyes on EU data next week

EUR/USD posted minimal gains of 0.18% on Friday amid thin liquidity conditions, as markets in the United States are closed due to the Independence Day holiday. The shared currency is poised to close the week with gains of 0.53% despite the release of solid US economic data this week.
New
update2025.07.05 05:59

AUD/USD retreats as risk-off mood builds ahead of Trump's tariff deadline

The Australian Dollar (AUD) weakened against the US Dollar (USD) on Friday amid a low-volume trading session and a risk-off tone ahead of US President Donald Trump's July 9 tariff deadline.
New
update2025.07.05 05:14

USD/JPY Price Forecast: Eyes breakout as triangle narrows, but lacks momentum

The US Dollar (USD) is trading slightly lower against the Japanese Yen (JPY) on Friday, with the USD/JPY hovering around 144.50 in subdued holiday-thinned conditions as US markets remain closed for Independence Day.
New
update2025.07.05 04:10

NZD/USD risks further downside as Kiwi tests critical support at 0.6050

The New Zealand Dollar (NZD) is weakening against the US Dollar (USD) on Friday as market participants weigh near-term resistance against a weakening bullish structure.
New
update2025.07.05 04:04

Gold price shines as USD slips, trade war fuels safe-haven demand

Gold price resumes its uptrend on Friday, poised to print gains of over 1.50% for the week as the US Dollar is on the back foot amid thin liquidity conditions following the closure of US markets in celebration of Independence Day. A slight escalation of the trade war boosted bullion prices.
update2025.07.05 02:41

GBP/JPY retreats as safe-haven demand rises ahead of Trump's tariff deadline

The Japanese Yen (JPY) is strengthening against the British Pound (GBP) on Friday as markets turn cautious ahead of the weekend.
update2025.07.05 02:16

WTI Crude Oil consolidates near key support, OPEC+ decision looms

West Texas Intermediate (WTI) Crude Oil prices remain subdued on Friday, extending losses from the previous day and hovering near the mid-$65s amid thin holiday trading, lingering demand concerns, and a lack of fresh catalysts.
update2025.07.05 01:12

BoE's Taylor: Disinflationary forces are building

Bank of England (BoE) rate-setter Alan Taylor noted late on Friday that downside pressures are continuing to build up underneath the UK's economy, signaling that early rate cuts may be needed ahead of a questionable forecasting period.
update2025.07.05 01:00

EUR/USD firms as tariffs and Trump's tax bill dominate headlines

The Euro (EUR) is holding modest gains against the US Dollar (USD) in thin trading conditions on Friday. With US markets closed in observance of Independence Day, liquidity is limited.
update2025.07.05 00:35

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