The GBP/JPY currency pair traded in proximity to a fresh 92-month peak on Friday, after preliminary figures showed the British economy had expanded at a faster rate than anticipated in the second quarter.
UK GDP grew 0.2% quarter-on-quarter in Q2, following a 0.1% increase in Q1 and exceeding market consensus of zero growth.
Services sector registered 0.1% growth in Q2, driven by motion picture, video, TV programme production, computer programming and food and beverage services, data by the Office for National Statistics showed.
UK production sector expanded 0.7% in Q2, bolstered by 1.6% growth in manufacturing, while construction grew 0.3% quarter-on-quarter.
On the expenditure side, household consumption rose 0.7% in Q2, driven by transport, recreation & culture and restaurants & hotels. Additionally, government spending increased 3.1% on quarter.
On the other hand, gross fixed capital formation registered no growth since a 3.4% surge in business investment was offset by a 6.7% drop in government investment.
In annual terms, the economy expanded 0.4% in the second quarter, again outstripping market expectations of a 0.2% growth.
Meanwhile, Japanese markets remained closed on Friday due to the Mountain Day holiday.
As of 7:37 GMT on Friday GBP/JPY was edging up 0.18% to trade at 183.814. Yesterday the minor Forex pair went up as high as 184.244. The latter has been the pair’s strongest level since December 14th 2015 (184.541).
Against the US Dollar, the Japanese Yen traded near the critical support level of 145.000, which brought forth some concern of another round of Bank of Japan intervention.
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