GBP/JPY Holds Steady Above 210.50 After UK Macro Data - Valbury Asia Futures

The GBP/JPY currency pair attracted fresh sellers after an intraday rise to the 211.22 area and retreated to the lower end of its daily range during the early part of the European session on Tuesday. The spot price moved marginally after the release of UK macro data and is currently trading slightly above the mid-210s, near the more-than-three-week low set on Monday.

The UK’s Office for National Statistics confirmed that the economy grew by 0.1% in the October-December period, unrevised from the preliminary estimate published last month. Additional details showed that business investment fell by 2.5% in the final quarter of 2025, compared to the previously reported -2.7%. However, this retrospective data failed to provide meaningful support to the Pound Sterling (GBP) amid economic concerns stemming from the Iran war.

The UK economy is highly vulnerable to energy price shocks. Moreover, hawkish signals from the Bank of England (BoE) regarding a potential rate hike as early as April amid inflation worries increase downside risks for the economy, which in turn weighs on the GBP. The Japanese Yen (JPY), on the other hand, is supported by speculation that authorities will intervene to curb further weakening of the domestic currency. This contributes to capping the GBP/JPY pair.

Meanwhile, a government report earlier today showed that Tokyo’s headline Consumer Price Index (CPI) – Japan’s capital – slowed from 1.5% to 1.4% in March, marking the lowest reading since March 2022. Additionally, the core measure (excluding fresh food and volatile energy costs) also missed expectations and tempered bets for immediate policy tightening by the Bank of Japan (BoJ). This acts as a drag on the JPY and provides support to the GBP/JPY pair.