• GBP/JPY trades lower on Friday after Japanese GDP data beats expectations and data for the same period from the UK. 
• Volatility is tempered by markets' view that the data is not sufficiently game-changing for either currency in the pair. 
• Much may hinge on BoJ Governor Ueda’s speech on Monday, the wide interest-rate differential supports GBP in the long run. 

GBP/JPY trades lower by about a third of a percent, in the 197.10s on Friday, after the release of weak UK economic growth data led to a depreciation of the Pound Sterling (GBP). The Japanese Yen (JPY) conversely was buoyed by better-than-expected Gross Domestic Product (GDP) and Industrial Production data which renewed hopes that the Bank of Japan (BoJ) will raise interest rates at its December policy meeting. 

UK GDP data for the month of September actually fell 0.1% MoM and rose only 0.1% in the whole of the third quarter (QoQ). This was below estimates and prior readings. The quarterly data showed a marked decceleration from a growth rate of 0.5% in Q2. 

In Japan, meanwhile, GDP grew at a slightly faster rate of 0.2% in Q3, in line with estimates of 0.2% but lower than the 0.5% of Q2. 

On an annualized basis, Japanese GDP rose by 0.9% in Q3, beating expectations of 0.7% but below the revised-down 2.2% of Q2. Japanese Industrial Production rose by 1.6% MoM beating estimates and previous figures. 

Although the data from Japan was higher than the UK data (0.2% vs. 0.1% in Q3) and beat estimates, whilst the UK figures undershot them, the difference may not be enough to be game-changing for either currency, according to institutional analysts.