GBPJPY

British pound / Japanese yen

According to the Cabinet Office's December economic report, Japan is going to keep a close eye on the factors such as the spread of COVID-19 in China, economic downturn risks, sharp price increases and supply issues.

The yen slightly weakened on Wednesday but retained its advance against the dollar seen in yesterday's session. Traders are still confused by the Bank of Japan’s policy tweak.

Business confidence in the UK grew at the fastest rate in 20 months. Lloyds Bank Plc's said its UK sentiment index rose from 10% in November to 17% in December.

Due to increasing interest rates and deepening recession, the British property market is experiencing more and more stress. This sphere, which used to be prosperous during the pandemic, might face price decrease by 10% over the next year.

The Bank of Japan's next move could be a reversal in its negative rate (-0.1%), as Goldman Sachs Group Inc. said. This step can be taken due to an unexpected widening of the government bond yield band (JGB).