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GBP/JPY slips as traders await BoE decision and BoJ signals
The UK CPI fell to a 15-month low of 2.6% in June, but inflation still sits above the BoE 2% target, leaving traders focused on the policy path.
GBP/JPY is edging lower as buyers struggle to build on the prior day bounce from the 217.15 area, or a two-week low, with spot pricing holding just above the 218.00 level, according to FXStreet.
FXStreet reports that traders are looking ahead to the Bank of England decision, which is expected to keep interest rates steady because domestic inflation pressures remain contained despite volatility in energy prices.
The outlet notes the UK CPI dropped to 2.6% in June, the lowest in 15 months, but remains above the BoE’s 2% target, keeping attention on guidance for the future path of rates.
FXStreet also points to US dollar strength pressuring GBP, while traders watch for any potential Japanese intervention to support the yen, with carry-trade dynamics and wider funding-cost differentials still weighing on the GBP/JPY cross.