British Pound attracts bids against Japanese Yen after strong UK Q2 GDP data

• The British Pound gains slightly against the Japanese Yen due to stronger-than-expected UK Q2 GDP data.
• UK GDP growth remained steady at 0.6% in the second quarter this year.
• Investors seek fresh cues regarding more US-Japan intervention to support the Yen.

The British Pound (GBP) attracts slight bids against the Japanese Yen (JPY) during the European trading session on Wednesday, following the release of the preliminary United Kingdom (UK) Q2 Gross Domestic Product (GDP) data.

The Office for National Statistics (ONS) has reported that the economy expanded at a steady pace of 0.6%, faster than estimates of 0.4%. On an annualized basis, the GDP growth also remained higher at 1.2% than the 1.1% estimates and the previous reading of 0.9%. In June, GDP growth was 0.3%, while it was expected to remain flat again.

Meanwhile, monthly Manufacturing and Industrial Production data also remained stronger than expectations. Manufacturing Production rose by 0.5%, while it was expected to decline by 0.2%. Industrial Production grew 0.2%, faster than 0.1% estimates.

Going forward, the British currency will be influenced by market expectations for the Bank of England’s (BoE) monetary policy outlook.

On the Tokyo front, the Japanese Yen trades broadly sideways as investors seek fresh cues from Japan’s Ministry of Finance (MoF) on whether there will be more United States (US)-Japan joint intervention to support the currency.

The US-Japan jointly intervened on the last day of July to counter “excessive volatility and disorderly movements in the Japanese yen in recent months", Japan MoF reported.