The Consumer Price Index (CPI) in the UK is expected to rapidly decrease from 6.7% year-on-year (YoY) in September to 4.8% in October amid the risk of an economic downturn. The sharper-than-expected decline in inflation figures has led investors to anticipate that the Bank of England (BoE) will soon start reducing interest rates, inevitably impacting the Pound Sterling's depreciation.

The prolonged monetary policy easing by the Bank of Japan has led the Yen to consistently weaken, prompting investors to believe that the Yen may no longer serve as a safe-haven currency. Additionally, if the UK's CPI figures are slightly higher than anticipated, it could further strengthen the GBP/JPY exchange rate

The introduction of Yield Curve Control (YCC) announced earlier by the Bank of Japan indicates an attempt to depart from a long-standing accommodative monetary policy. However, with the GDP figures contracting for the first time in a year, this might constrain the BoJ from making any policy changes in the near term.