GBP/JPY breaks its three-day winning streak, trading around 191.80 during the European hours on Tuesday. However, the JPY encountered challenges as weak Japanese manufacturing data fueled speculation that the Bank of Japan (BoJ) might postpone further rate hikes.On Tuesday, Japan announced to allocate ¥989 billion to fund energy subsidies in response to rising energy costs and the resulting cost-of-living pressures. This government intervention could potentially contribute to inflation.The Bank of Japan’s (BoJ) hawkish monetary policy stance has been further reinforced by a recent increase in Tokyo’s inflation. Meanwhile, Japanese companies reported a sharp rise in capital spending for the second quarter.In the United Kingdom (UK), BRC Like-for-Like Retail Sales increased by 0.8% year-on-year in August, up from a 0.3% rise in July, marking the fastest growth in five months. On Monday, the S&P Global UK Manufacturing PMI held steady at 52.5 for August, consistent with preliminary estimates.The Pound Sterling received support as traders anticipate no rate cut by the Bank of England (BoE) in the September meeting, while the possibility of a 25 basis points (bps) interest rate cut in the November meeting stands at 87.2%.Traders await BoE Deputy Governor Sarah Breeden’s role as moderator for a panel on supervisory cooperation at a joint conference hosted by the European Central Bank and the European Banking Authority on Tuesday.More By This Author:GBP/USD Advances Toward 1.3150 Due To Risk-On Mood USD/CAD Rises To Near 1.3500 Due To Lower Crude Oil Prices USD/CAD Remains Below 1.3500 Due To Higher Oil Prices, US PCE Eyed
