GBP/JPY rebounds on dovish BoE

The GBP/JPY is rebounding from last week’s dip. It is a heavy week on the economic calendar for the Pound Sterling, with wages, inflation, and Retail Sales inbound.

Dovish comments from BoE officials are capping upside potential for the GBP. The GBP/JPY is seeing gains for Monday, trading into 182.50 after Friday’s dip into 181.27 on broad-market risk aversion.

Sterling is catching some early-week lift against the Japanese Yen (JPY) to kick off the new trading week as Guppy traders brace for a tense showing on the economic calendar this week.

UK earnings figures are due on Tuesday, and investors are forecasting total Average Earnings (plus bonuses) to dip slightly from 8.5% to 8.3%, with Average Earnings (excluding bonuses) seen holding steady at 7.8% for the quarter into August.

UK Consumer Price Index inflation figures are due on Wednesday, with markets expecting the monthly figure for September ticking up slightly from 0.3% to 0.4%, and the annualized figure for September is forecast to decline slightly from 6.7% to 6.5%.

Over the horizon, Friday has UK Retail Sales on the docket, where investors are forecasting a -0.1% decline in September after the previous month’s 0.4%.