GBP/JPY edges up to near 215.70 in countdown to BoJ policy

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The GBP/JPY pair ticks up to near 215.70 during the early European trade on Monday. The pair edges higher as the Japanese Yen (JPY) underperforms its major currency peers amid uncertainty surrounding the Bank of Japan’s (BoJ) monetary policy, which will be announced on Tuesday.

GBP/JPY edges higher to near 215.70 as the Yen underperforms ahead of the BoJ policy.
Both the BoJ and the BoE are expected to hold interest rates steady.
Iran wants the US to lift the blockade before resuming nuclear negotiations.

Japanese Yen Price Today

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

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.03%	0.05%	0.05%	-0.03%	-0.16%	-0.02%	0.11%
EUR	-0.03%		0.04%	0.04%	-0.04%	-0.15%	-0.03%	0.09%
GBP	-0.05%	-0.04%		0.00%	-0.09%	-0.22%	-0.09%	0.05%
JPY	-0.05%	-0.04%	0.00%		-0.07%	-0.21%	-0.09%	0.10%
CAD	0.03%	0.04%	0.09%	0.07%		-0.12%	-0.01%	0.15%
AUD	0.16%	0.15%	0.22%	0.21%	0.12%		0.14%	0.27%
NZD	0.02%	0.03%	0.09%	0.09%	0.00%	-0.14%		0.13%
CHF	-0.11%	-0.09%	-0.05%	-0.10%	-0.15%	-0.27%	-0.13%

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).

Investors expect the BoJ to leave interest rates unchanged at 0.75% for the third time in a row, as elevated energy prices in the wake of Middle East conflicts have prompted downside economic risks.

As the BoJ is almost certain to maintain the status quo, market participants will pay close attention to the monetary policy statement and Governor Kazuo Ueda’s press conference to get fresh cues on Japan’s interest rate outlook.

On Tuesday, investors will also focus on Japan’s labor market data. The Unemployment Rate is seen as steady at 2.6%.

Meanwhile, the Pound Sterling (GBP) trades subduedly amid the diplomatic stalemate between the United States (US) and Iran. Peace talks between the nations remain jammed as the US cancels the visit of its envoys to Pakistan, with President Donald Trump citing that the visit is a waste of time, as the offer from Tehran is not good enough. Iran wants US to lift the blockade from Iranian sea ports as pre-condition for discussing other terms a permanent ceasefire.

On the domestic front, investors await the Bank of England’s (BoE) monetary policy announcement on Thursday. The BoE is expected to hold interest rates steady at 3.75%, citing upside inflation risks.

Economic Indicator

BoJ Interest Rate Decision

The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.