GBP Steadies Against JPY on Stronger-Than-Expected Retail Sales

The British Pound (GBP) has steadied against the Japanese Yen (JPY) following stronger-than-expected UK Retail Sales data. According to the UK Office for National Statistics, Retail Sales climbed 1.0% month-over-month in June, beating market forecasts of a 0.3% decline.

On an annual basis, June Retail Sales grew by 4.2%, outperforming both May's revised 3.5% increase and the expected 2.3%. Core Retail Sales, which exclude volatile auto and motor fuel, also showed robust growth, rising 1.1% MoM against an anticipated 0.4% contraction.

The Japanese Yen continues to struggle, with verbal warnings of potential government intervention failing to stem its decline. The Yen's weakness is partly due to domestic fiscal concerns surrounding Prime Minister Sanae Takaichi's policies and escalating US-Iran tensions, which have raised fears for Japan's energy-dependent economy.