GBP/JPY Surges as UK Services Data Beats Expectations

The British Pound strengthened for the second consecutive day against the Japanese Yen on Wednesday, reaching levels around 212.50.

The upward revision of UK services data provided support to the Pound, while concerns about Japan's tax-slashing plan weighed on the Yen.

According to S&P Global Services Purchasing Managers Index (PMI), July's final reading was revised up to 52.1 from preliminary estimations of 51.8, indicating a sharp improvement from June's reading of 48.8.

Strategists at BNY reported that investors are looking to maintain net positive cross-border exposure to JPY, but caution that recent developments have weakened resolve.