Snapshot: GBP/JPY trades 213.28, up 0.18% on the day. The dominant domestic driver remains the Bank of England’s hawkish hold, with two MPC members already voting for a hike, keeping upside pressure on Sterling. Today’s Tokyo Core CPI print at 08:30 JST is the immediate domestic catalyst.
- The BoE’s 7-2 vote split for holding rates at 3.75% but with two members pushing for a hike to 4% underscores persistent inflation concerns and supports Sterling strength.
- Watch for any dovish signals from the BoJ’s ongoing normalisation path, particularly concerning intervention risk as Yen weakness persists, which could cap Guppy upside.
Bias into NY: The setup favours a continued grind higher for GBP/JPY as Sterling benefits from the BoE’s hawkish bias, with the pair likely to test higher levels unless the Tokyo Core CPI prints significantly above expectations, forcing a reassessment.