GBP/JPY Hits Weekly High Amid Japan's Fiscal Plans and Rate Gap

The GBP/JPY cross has been trading in a tight band around 213.00 after rebounding from its lowest level since early March, near the mid-209.00s.

The pair's gains are being restrained by softness in the British Pound, as the US Dollar maintains its previous day's strength against a backdrop of ongoing geopolitical tensions.

Japan's fiscal plans and the sizable Bank of England, Bank of Japan rate gap continue to weigh on the Yen, with Japanese consumer spending declining 3.3% year-on-year in June, marking a seventh consecutive monthly contraction.

The Bank of England's base rate stands at 3.75%, leaving an interest rate differential of about 275 basis points between the UK and Japan, which keeps carry trade strategies in play.