Anna 
During the European session on Tuesday, the GBP/JPY pair snapped its six-day winning streak, trading around 195.90. The Pound Sterling (GBP) faced challenges following the release of mixed UK employment data, which exerted downward pressure on the GBP/JPY cross.
Key highlights from the UK employment data include:
The ILO Unemployment Rate (3M) increased to 4.3% in March from 4.2% previously, aligning with market expectations.
The number of unemployed individuals rose by 46,000 to a total of 1.49 million, particularly driven by those unemployed for up to 6 months.
The number of people claiming jobless benefits increased by 8.9K in April, contrasting with a decline of 2.4K in March.
UK Employment Change for the three months to March was reported at -177K, compared to the previous reading of -156K.
Huw Pill, Chief Economist at the Bank of England (BoE), hinted at potential interest rate cuts, stating that the BoE can consider rate cuts while maintaining a restrictive policy stance. He expressed confidence that over the summer, there may be enough evidence to contemplate rate adjustments.
On the Japanese Yen (JPY) front, former Bank of Japan (BoJ) executive Kazuo Momma suggested a delay in the next rate hike until September. Momma indicated that policymakers prefer to wait for more information, particularly from the government’s monthly wage data for July and August.
Japan’s Finance Minister Shunichi Suzuki emphasized collaboration between the government and the BoJ to align policy objectives regarding foreign exchange. Suzuki highlighted efforts to closely monitor Japanese Yen movements and implement necessary measures to ensure stability.
The GBP/JPY pair’s decline reflects market reactions to the latest economic developments and policy outlooks from both the UK and Japan. Traders will continue monitoring data releases and central bank statements for further insights into currency movements and potential policy shifts.
