GBP/JPY consolidates near 156.00 post-BOJ interest rate decision

• GBP/JPY fell for the second straight day on Thursday.
• Brexit headlines, annual budget amid higher inflation expectations weigh on sterling. 
• BOJ policy update, Retail Sales data directed the Japanese yen performance.

GBP/JPY continues to extend its previous session’s losses on Thursday . The pair opened higher but failed to sustain the gains and retreated toward the lower level. At the time of writing, the GBP/JPY pair is trading at 156.03 down 0.28% for the day.

The British pound lost against its peers, as investors digested Britain’s annual budget amid higher inflationary pressure, higher interest rates, and energy crisis.The Office for Budgetary Responsibility forecast the Gross Domestic Product (GDP) would grow by 6.5% in 2021, faster than a 4.0% expansion predicted in March.

In the latest development, France threatens to block UK ships from their ports in the next week should the UK refrain from easing controls over fishing. Britain on the other hand showed readiness to retaliate. This, in turn, weighs negatively on the British pound.

It is worth noting that the S&P 500 Futures are trading at 4,548 with 0.08% gains.

On the other hand, the Japanese yen edged higher after the Bank of Japan’s (BOJ) monetary policy decision and economic forecasts came as per the market expectations. The cash rate maintained at -0.1% and its 10-year government bond yield target around 0%.

As for now, the market dynamics continue to influence the pair’s performance in the near future.

GBP/JPY additional levels