06 Nov 2025
GBP/JPY Holds Steady Near 201.00 Ahead of BoE Decision
The GBP/JPY pair remains steady around the 201.00 level, lacking clear direction as traders await the Bank of England’s (BoE) policy decision.
The British Pound (GBP) stays under pressure amid ongoing fiscal concerns in the UK, soft inflation data, slowing wage growth, and rising unemployment — all factors that give the BoE more room to consider a rate cut. Markets are currently pricing in a one-in-three chance of a 25 bps cut today and about a 70% probability of a rate reduction by year-end.
Meanwhile, the Japanese Yen (JPY) finds support from renewed expectations of a Bank of Japan (BoJ) rate hike and speculation of possible FX intervention to stem further Yen weakness. However, expectations that Japan’s new Prime Minister Sanae Takaichi will introduce large-scale fiscal spending may limit any major JPY gains.
Overall, the pair continues to trade within a tight range as investors await fresh policy cues from both central banks to determine the next directional move.
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