GBP/JPY struggles near mid-160.00s, over one-week low despite mostly upbeat UK jobs data – by hareshmenghani GBPJPY FiscalPolicy Employment BOJ Currencies
sion on Tuesday. Spot prices, however, manage to recover a few pips and now seem to have stabilized around the mid-160.00s.
The British pound continues with its struggle to gain any meaningful traction amid worries about the UK government's fiscal plans and fails to gain any respite from mostly upbeat UK employment details. The Office for National Statistics reported this Tuesday that the unemployment rate in the UK dropped to 3.5% during the three months to August from 3.6% previous.
The Japanese yen, on the other hand, draws some support after Japan's Finance Minister Shunichi Suzuki reiterated that the government stands ready to intervene and respond appropriately to excess FX moves. Apart from this, the prevalent risk-off environment benefits the JPY's relative safe-haven status against its British counterpart and exerts some pressure on the GBP/JPY cross.