Ella 
GBP/JPY is higher after UK consumer price index (CPI) inflation came in better than expected.
The British inflation rate released on Wednesday was better than market expectations, showing that the monthly rate of inflation climbed 0.4% in December, double the market median forecast of 0.2%, and significantly stronger than the previous value of -0.2%. The chances of the Bank of England (BoE) launching a round of interest rate cuts are fading as inflation stands firmer than investors expected, pulling risk assets lower and sending the pound sharply higher on repatriation funds.
UK retail prices also rose 0.5% in December, against expectations of 0.4% and the previous reading of -0.1%, adding to the chagrin of investors looking for a pullback in inflation.
The Bank of Japan (BoJ) remains steadfast in its ultra-loose monetary policy stance and is determined to continue to hold back the yen as policymakers worry that inflation may fall below the BoJ’s 2% target at some point in the future. Down.
In early Asian trading on Thursday, Japan’s November machinery orders data will be released. Machinery orders are expected to fall by 0.8% on a monthly basis, compared with a 0.7% increase in October. The annual rate of machinery orders in November is expected to rebound to 0.2% from -2.2% in the previous period, as the indicator’s recent downward trend is nearing an end.
British retail sales data for December will be released on Friday. The median market forecast is that retail sales in December will be -0.5% monthly (previous value: 1.3%), and December retail sales annual rate is expected to be 1.1% (previous value: 0.1%).
