GBP/JPY Rises Before Release of Upcoming Data, Interest Rates

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The British pound sterling (GBP) comes in one of those currencies that maintain its stability during the worst condition of COVID.

Today, the pound inched higher against the Japanese yen (JPY) with a price of more than 136.00 after the incredible drop of the last three days.

As far as the technical bias is concerned then it might remain bullish for a while as the upperside price movement of the GBP/JPY currency pair posted a higher high wave.

GBPJPY

Let’s talk to the recent highlights that pull the GBP/JPY pair toward the success.

Asset Purchase Facility will release its data on August 05, 2021, as per the FXStreet report, the Bank of England (BoE) might keep its policy unchanged and release updated predictions. Slower growth and inflation, as well as twin COVID worries and the Federal Reserve, will almost certainly lead to a cautious tone. The GBP/JPY exchange rate may fall as a result of the decision, but this could only be temporary.

Then, the British central bank will announce the interest rate, which according to economists’ predictions, might remain the same this month compared to the prior month’s rate.

It is beneficial, or bullish, for the GBP if the Reserve bank is hawkish about the economy’s inflationary prospects and raises interest rates.

Trade Idea

Considering the price action of the pair over the past few days, buying it around the current levels could yield some profits in short to medium-term trading.

 

 

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