Key Moments
- GBP/JPY recovered earlier losses and trades slightly higher near 215.45 in Thursday’s European session.
- Meanwhile, markets expect the Bank of Japan to keep rates unchanged at 0.75% on April 28.
- In addition, UK S&P Global Composite PMI is forecast to fall to 49.8, signaling possible contraction.
Cross Rebounds as Yen Underperforms
GBP/JPY turned higher after early losses and moved into positive territory near 215.45 in European trade on Thursday. Moreover, the pair recovered as the Japanese Yen weakened broadly against major currencies.
At the same time, Yen weakness supported the rebound. Traders expect the Bank of Japan (BoJ) to delay further tightening. As a result, the Yen lost ground and helped lift GBP/JPY.
JPY Performance Against Major Currencies
The Japanese Yen lagged other major currencies during the session. In particular, it showed the weakest performance against the Canadian Dollar.
| Japanese Yen – Relative Performance Snapshot | |
|---|---|
| Description | Observation |
| Base currency | JPY |
| Weakest performance vs. | Canadian Dollar |
The heat map compares percentage moves across major currencies. The left column shows the base currency. Meanwhile, the top row shows the quote currency. For example, JPY against USD displays the relative change between the two.
BoJ Policy Outlook and Macroeconomic Backdrop
Markets now focus on the Bank of Japan decision on April 28. Most analysts expect the BoJ to keep its policy rate steady at 0.75%.
However, expectations for further tightening have weakened. Rising economic risks and higher energy costs continue to pressure the outlook. In turn, this uncertainty weighs on the Yen.
UK Data Watch: PMI in Focus
The Pound trades cautiously ahead of UK flash PMI data due at 08:30 GMT. Investors expect weaker private-sector activity for April.
Specifically, forecasts point to a decline in services and softer manufacturing output. As a result, the Composite PMI is expected to fall to 49.8 from 50.3.
This drop would push the index below the 50 threshold. Therefore, it would signal contraction in the UK economy.
| UK S&P Global Composite PMI – Key Details | |
|---|---|
| Previous reading (March) | 50.3 |
| Consensus forecast (April) | 49.8 |
| Next release | Thu Apr 23, 2026 08:30 (Prel) |
| Frequency | Monthly |
| Source | S&P Global |
Bank of England Policy Expectations
The Bank of England is expected to keep rates unchanged at 3.75% on April 30. Meanwhile, inflation data shows some cooling in core and services prices.
However, the BoE remains cautious. Energy prices still create upside risks. Therefore, the central bank is unlikely to signal near-term rate cuts.
Understanding the S&P Global Composite PMI
The S&P Global Composite PMI tracks UK business activity in manufacturing and services. It updates monthly and surveys company executives.
Responses reflect whether conditions improved, declined, or stayed the same. In addition, results are weighted by company size and sector output.
A reading above 50 signals expansion. In contrast, a reading below 50 signals contraction. Therefore, the PMI often provides early clues about GDP, employment, and inflation trends.
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