Ella 
GBP/JPY remains above 187.00 during the Asian session on Tuesday. Mixed employment data from the United Kingdom (UK) provided some support for the pound (GBP). Figures published by the Office for National Statistics (ONS) showed that the ILO unemployment rate fell to 4.1% in the three months to July, down from 4.2% in June.
Changes in the number of unemployed people in the UK in August showed that the number of people applying for unemployment benefits dropped to 23,700, lower than market expectations of 95,500 and the previous value of 10.23. Average earnings (3 months), including bonuses, increased 4.0% year-on-year in July, compared with expectations of 4.1% and the previous value of 4.6%.
The GBP/JPY cross found support on Monday as Japanese yen (JPY) struggled following lower-than-expected GDP data. Still, strong economic growth, rising wages and persistent inflationary pressures continue to fuel expectations that the Bank of Japan (BoJ) may raise interest rates further, helping to limit the yen’s downside.
Japan’s second-quarter GDP annualized growth rate was 2.9%, slightly lower than the initial estimate of 3.1% and market forecast of 3.2%. Still, the figure represents the strongest annual growth since the first quarter of 2023. On a quarterly basis, gross domestic product grew 0.7% in the second quarter, missing consensus forecasts of 0.8% but still the strongest quarterly growth since the second quarter of 2023.
Shigeru Ishiba, Japan’s former defense minister and candidate for leadership of the ruling Liberal Democratic Party, said on Tuesday that achieving a complete escape from deflation is a key task for Japan, Reuters reported. Ishiba also pointed out: “Although there are some signs of improvement, I don’t think private consumption has recovered strongly yet.
