As the risk-off profile is fading, GBP/JPY is seeking to surpass a two-week high around 169.00.

VOT Research Desk

The GBP/JPY pair has continued to improve, and during the Tokyo session it hopes to move its trading over the 168.00 barrier.

As the market mood brightens, the cross is heading towards a two-week high near 169.00. Even if the Bank of England is anticipated to slow down the pace of rate increases, the Pound Sterling is anticipated to maintain its upward momentum (BOE).

The street is still debating whether or not the Autumn Statement has diminished the scenario for predictions or managed to restore confidence and ability in the UK’s economic future.

Following the news of windfall taxes from the incoming UK administration, renewables and energy solutions provider Shell is rethinking its intentions to expand in the country’s energy sector.

The enlarged levy revealed in the Chancellor’s Autumn Statement, according to Shell’s UK chairman David Bunch, is causing the corporation to reevaluate a number of on-going projects, from North Sea investments to renewable energy plans.

 UOB economists have maintained their forecast for a 50 basis point (bps) change in the UK’s interest rate at its December monetary policy meeting. Given that Hunt has chosen to postpone the majority of the discomfort associated with the fiscal consolidation, they think the BOE still has some work to do and that fiscal policy will have minimal impact on the fight against inflation.

Investors in Tokyo are becoming concerned as a result of the Japanese government’s plans to replace its Cabinet by the end of the year, according to Japan PM Fumio Kishida, who spoke to Mainichi.

The Japanese yen may experience some short-term volatility as a result. Investors are eagerly expecting the PMI statistics, which will be released on Thursday, on the economic front. Observed is the Jibun Bank Manufacturing PMI. at 50.7, as steady. While the Services PMI is predicted to slightly decrease to 53.1.