GBP/JPY Recovery Remains Elusive Below 158.00

During the first Asian session on Friday, GBP/JPY retreated to a two-year low of 157.54.

GBPJPY

Britain’s GDP increased by 0.8% in the first quarter, according to the UK’s Office for National Statistics. It was below market expectations of 1% and reminded investors of the BOE’s warning of a possible recession in 2022, prompting strong pound selling. Other UK figures Manufacturing and Industrial Production both fell 0.2% in March.

Brexit fears added to the pound’s burden. The EU is preparing to terminate trade talks with the UK if the Northern Ireland Protocol is unilaterally withdrawn.

The UK Office for National Statistics will publish the UK ILO Unemployment Rate (May 17, 2022). The UK ILO unemployment rate may fall to 3.6 per cent in March, down from 3.8 per cent in February, according to FXStreet.com experts.

The unemployment rate is a proportion of the entire civilian working force. Not to mention, it is a critical economic indicator. If the rate rises, the UK labour market is not expanding, weakening the pound (GBP). Generally, a low UK ILO unemployment rate indicates a favourable trend for the GBPJPY.

Conclusion

This week, the Fed-BOE disparity widened the gloomy UK economic forecast. GBPJPY held up well during the week.

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