BoE Outlook Uncertainty Weighs on British Pound Against Japanese Yen

The British Pound (GBP) has edged down against the Japanese Yen (JPY) as investors anticipate a hawkish move from the Bank of Japan (BoJ) in its upcoming September policy meeting.

According to Reuters, three sources familiar with the matter said that the BoJ is set to raise interest rates as soon as September and may hike more aggressively thereafter than the current pace of roughly twice a year.

The expectation of a rate hike has boosted the Japanese currency, causing it to outperform its peers and leading to mild selling pressure on the GBP/JPY pair.

Financial markets are also looking forward to next week's release of UK employment data for three months ending June and the Consumer Price Index (CPI) data for July, which will provide fresh cues about the Bank of England's (BoE) monetary policy outlook.