Ella 
GBP/JPY was marginally higher in intraday trading on Tuesday, recording 189.24. Factors affecting the GBP/JPY trend include continued changes in financial and economic conditions in the UK and Japan, which are affecting the monetary policy decisions of the Bank of England and the Bank of Japan. The Bank of England remains cautious about the resilience of the local economy, while the Bank of Japan has given no clear signal on when it will exit its ultra-loose policy.
In the UK, Bank of England officials, including Governor Andrew Bailey, gave no new policy guidance when testifying before the UK Treasury Select Committee. Bailey sees an improvement in the economy and recommends the central bank consider cutting interest rates before inflation reaches its target. However, the current market pricing is that the Bank of England’s first interest rate cut will be at its August meeting, but upcoming economic data will continue to determine the timing of the easing cycle.
