- The GBPJPY is in the spotlight due to uncertainty about the Bank of Japan’s interest rate decision, with expectations leaning towards maintaining current policies.
- In the UK, focus is on November’s CPI data, anticipating a decrease in headline CPI to 4.4% and core CPI to 5.5% year-on-year.
Data emanating from Britain and Japan this week could mean that the GBPJPY is the currency to watch this week.
Japan’s Bank of Japan (BoJ) is set to announce its final interest rate decision of the year on Monday.
Expectations from the BoJ are a little uncertain, prompted by remarks from Governor Ueda. Among various statements, he noted that the management of monetary policy would become more challenging toward the year’s end. However, some officials have tried to step back Ueda’s comments, and most analysts polled by Reuters anticipate that the central bank will maintain its current policy settings.
This uncertainty makes the yen a currency to closely monitor this week.
Moving to the UK, Wednesday will see the release of November’s Consumer Price Index (CPI) data. Expectations suggest a cooling of the headline CPI to 4.4% from 4.6%, and a decrease in the core measure to 5.5% year-on-year from 5.7%.
One day later, attention returns to Japan for its inflation rate. Forecasts anticipate a decrease in the Core inflation to 2.5% in November, down from 2.9% in October.
