GBP/JPY rises to around 190.70 in Friday’s early European session, adding 0.60% on the day.
UK Retail Sales climbed 1.7% MoM in January, stronger than expected.
Japan’s hotter CPI inflation print reaffirms BoJ rate hike bets, which might cap the downside for the JPY.
The GBP/JPY cross rises to around 190.70 during the early European trading hours on Friday. The Pound Sterling (GBP) strengthens against the Japanese Yen (JPY) after the release of UK January Retail Sales data.
Data released by the Office for National Statistics on Friday showed that UK Retail Sales climbed 1.7% MoM in January versus a fall of 0.3% in December. This figure came in above the market consensus of a rise of 0.3%. On an annual basis, Retail Sales increased 1.0% in January, compared to a rise of 2.8% (revised from 3.5%) prior, better than the estimation of 0.6%. The GBP remains firm in an immediate reaction to the upbeat UK Retail Sales.
Japan's Finance Minister, Katsunobu Kato said early Friday that higher long-term rates can pressure Japan's fiscal situation. These remarks exert some selling pressure on the JPY and act as a tailwind for GBP/JPY. However, the hotter-than-expected Japan’s National Consumer Price Index (CPI) inflation data reinforced the case for a hawkish outlook on the Bank of Japan (BoJ) monetary policy, which might help limit the JPY’s losses.
Source: FXSTREET
