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Pound gains versus yen after UK Q2 GDP beats estimates
UK Q2 GDP grew 0.6% quarter on quarter, and manufacturing and industrial production also surprised to the upside, adding support to GBP sentiment.
The British pound is edging higher against the Japanese yen in European trading after preliminary UK Q2 GDP data beat market expectations, according to FXStreet. The Office for National Statistics reported the economy expanded 0.6% quarter on quarter, versus estimates for 0.4%, with annualized growth also higher at 1.2% against 1.1% forecasts.
Additional UK indicators cited by FXStreet also pointed to strength. Manufacturing production rose 0.5% compared with expectations for a decline of 0.2%, while industrial production increased 0.2% versus 0.1% expected.
FXStreet said the outlook for the pound will likely depend on market expectations for Bank of England monetary policy. On the yen side, the article noted the currency is trading roughly sideways as investors await fresh guidance from Japan’s Ministry of Finance on whether there will be more US-Japan joint intervention to support the yen.
FXStreet referenced that the US and Japan jointly intervened on the last day of July to counter “excessive volatility and disorderly movements” in the yen, according to Japan MoF.