Following the release of UK employment figures for the three months ending in June, the British pound drops to about 215.95 against the Japanese yen.
The ILO unemployment rate for the UK is still 4.9%. At 3.5% YoY, Average Earnings Excluding Bonuses increased more quickly.
Investors are looking forward to Wednesday's release of the UK CPI statistics for July.
Following the release of UK labor market data for the three months ending in June, the British pound (GBP) is under selling pressure against the Japanese yen (JPY), falling to about 215.95.
The economy produced 83K new jobs, compared to 147K in the quarter that ended in May, according to the Office for National Statistics (ONS). The ILO Unemployment Rate, which was predicted to be lower at 4.8%, is still at 4.9%.
A crucial indicator of pay growth, average earnings excluding bonuses, increased at a quicker rate of 3.5% YoY compared to projections and the previous release of 3.4%. The salary growth measure, which includes bonuses, increased in accordance with 4.1% forecasts, which was higher than the previously reported 4.4%.
The UK Consumer Price Index (CPI) data is expected to be released on Wednesday, therefore investors should prepare for further volatility in the British pound this week. According to the report, headline inflation increased from 2.6% in June to 2.9% Year-over-Year (YoY).
However, compared to the prior estimate of 2.6%, the core CPI, which does not include the volatile components of food, energy, alcohol, and tobacco, is expanding at a moderate rate of 2.5%.
The Bank of England's (BoE) expectations for monetary policy will probably be significantly impacted by the inflation figures.
It is currently anticipated that the BoE would maintain constant interest rates throughout the year.
As UK growth momentum wanes, the BoE is expected to be put on hold until year's end.
Rabobank strategists emphasize a stable policy outlook, stating that "it is RaboResearch's belief that the BoE will likely keep interest rates on hold through to the end of the year."
Even if financial markets are optimistic about a Bank of Japan (BoJ) interest rate hike in September, the Japanese yen generally underperforms on the Tokyo front.
According to MUFG analysts, "the pricing for a 25bp raise at the next meeting in September remains elevated, reflecting approximately an 80% probability of a hike," indicating that market expectations for additional BoJ tightening are still strong.
The ILO unemployment rate for the UK is still 4.9%. At 3.5% YoY, Average Earnings Excluding Bonuses increased more quickly.
Investors are looking forward to Wednesday's release of the UK CPI statistics for July.
Following the release of UK labor market data for the three months ending in June, the British pound (GBP) is under selling pressure against the Japanese yen (JPY), falling to about 215.95.
The economy produced 83K new jobs, compared to 147K in the quarter that ended in May, according to the Office for National Statistics (ONS). The ILO Unemployment Rate, which was predicted to be lower at 4.8%, is still at 4.9%.
A crucial indicator of pay growth, average earnings excluding bonuses, increased at a quicker rate of 3.5% YoY compared to projections and the previous release of 3.4%. The salary growth measure, which includes bonuses, increased in accordance with 4.1% forecasts, which was higher than the previously reported 4.4%.
The UK Consumer Price Index (CPI) data is expected to be released on Wednesday, therefore investors should prepare for further volatility in the British pound this week. According to the report, headline inflation increased from 2.6% in June to 2.9% Year-over-Year (YoY).
However, compared to the prior estimate of 2.6%, the core CPI, which does not include the volatile components of food, energy, alcohol, and tobacco, is expanding at a moderate rate of 2.5%.
The Bank of England's (BoE) expectations for monetary policy will probably be significantly impacted by the inflation figures.
It is currently anticipated that the BoE would maintain constant interest rates throughout the year.
As UK growth momentum wanes, the BoE is expected to be put on hold until year's end.
Rabobank strategists emphasize a stable policy outlook, stating that "it is RaboResearch's belief that the BoE will likely keep interest rates on hold through to the end of the year."
Even if financial markets are optimistic about a Bank of Japan (BoJ) interest rate hike in September, the Japanese yen generally underperforms on the Tokyo front.
According to MUFG analysts, "the pricing for a 25bp raise at the next meeting in September remains elevated, reflecting approximately an 80% probability of a hike," indicating that market expectations for additional BoJ tightening are still strong.
