British pound outlook for the week: sluggish growth or fears of UK economic slowdown remain

■ The pound/yen exchange rate is weak this week, affected by the plunge in the US dollar/yen exchange rate .
Pound selling and US dollar buying, assuming a significant slowdown in the British economy, has run its course, and some have even observed a move to buy back the pound.
However, as the US dollar/yen exchange rate fluctuated sharply in the direction of yen appreciation in the second half of the week, the pound was sold and the yen was bought in order to adjust positions, and the pound’s exchange rate against the yen temporarily fell to the low 163 yen level.
Trading range: ¥163.07-¥169.09. ■ Sluggish growth or sluggish growth in the pound/yen next week amid

concerns about economic stagnation in the UK . The Sunak administration in the UK is expected to announce a fiscal policy on November 17th, mainly involving tax increases and spending cuts. From the perspective of fiscal reconstruction, pound buying is likely to prevail. However, there are concerns about the impact on the economy of the tax hike under high inflation, and if there is no major movement in the US dollar/yen exchange rate, the pound/yen may stagnate. ○ Major UK economic indicators scheduled to be released/Notable events・16th: October core consumer price index (September: +6.5% YoY)・17th: October retail sales (September: -1.4% YoY) ) Expected range: 162.00 yen – 166.00 yen

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