On Friday, during Asian trading, the GBP/JPY pair saw an increase of 0.35%, hovering around 214.00. The Japanese yen gained strength as it reversed most of its losses from Thursday. This shift can be attributed to Japan’s intervention in the foreign exchange market aimed at stabilizing the yen against speculative pressures.
Reportedly, Japan’s actions on Thursday marked its first official currency intervention in nearly two years. Finance Minister Satsuki Katayama mentioned she was nearing a decisive strategy regarding foreign exchange movements.
In another development, Tokyo’s Consumer Price Index (CPI) excluding fresh food for April came in lower than anticipated. Year-over-year inflation growth dipped to 1.5%, down from 1.7% in March, against forecasts that suggested a rise to 1.8%.
Meanwhile, the British pound was performing well against most major currencies, except for the Canadian dollar. This comes as the Bank of England (BoE) hinted at potential interest rate hikes if the energy supply disruption continues.
On Thursday, the BoE maintained interest rates at 3.75%. Governor Andrew Bailey cautioned about the risk of secondary inflation effects stemming from the energy crisis, asserting that timely action is critical. He remarked that waiting for the second-round effects would likely be too late.
Economic Indicators
The Consumer Price Index (CPI) issued by Tokyo’s Metropolitan Government measures price changes for household goods and services, excluding fresh food due to its fluctuating prices influenced by weather. This index is often seen as a precursor to Japan’s broader CPI, released ahead of national figures. In general, higher figures are viewed positively for the yen, while lower numbers can have a negative impact.
Final release:April 30, 2026 23:30
Frequency:Monthly
Actual:1.5%
Consensus:1.8%
Previous:1.7%
