The Bank of Japan’s surprise decision to increase stimulus measures has seen the Pound to Japanese Yen (GBP/JPY) exchange rate advance by a massive 2.04%. Poor British data has been completely overshadowed by the quantitative and qualitative easing program initiated by the BOJ, who admitted the plan to re-inflate the flagging economy has failed thus far.
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 178.2900.
On Thursday the Pound gradually appreciated against the majority of its most traded currency competitors. This was as a result of better-than-expected British economic data and improvement in Eurozone data. Also, as the Federal Reserve continued to hold their ultra-low bank rate, negative sentiment towards the Bank of England eased a little.
Meanwhile, the Japanese Yen has continued to decline against most of its major peers as market risk sentiment improved. Compounding the Yen declination was a disappointing result in the Japanese National Consumer Price Index, which dropped below the forecast figure of 3.3% to 3.2%.
The Pound Sterling to Japanese Yen exchange rate has fallen to a low today of 174.6500.
On Friday, the Pound has generally depreciated against many of its rivals after economic data printed below expectations. The UK Consumer Confidence Survey was forecast to equal the previous figure of -1, but the actual result fell to -2.
Friday’s Japanese data has had absolutely no bearing on the Yen after the Bank of Japan elected to introduce fresh stimulus initiatives, much to the surprise of traders and economists alike. ‘We decided to expand the quantitative and qualitative easing to ensure the early achievement of our price target,’ BOJ Governor Haruhiko Kuroda told a news conference, reaffirming the BOJ’s goal of pushing consumer price inflation to 2 percent next year.
Prior to Friday’s shock decision, Kuroda had been very optimistic regarding the expansive stimulus measures employed just 18 months ago. However, the Japanese economy has stagnated despite the BOJ’s asset purchases and earlier government spending. ‘This is a significant negative signal for the Yen and the key really isn’t the details in this case, it’s the timing,’ said Todd Elmer, a strategist at Citigroup Inc. in Singapore, referring to the BOJ’s decision.
Pound to Japanese Yen Exchange Rate Forecast to Hold Gains
Given that the Bank of Japan’s decision was unexpected, negative sentiment towards the institution is likely to mount significantly. The GBP/JPY exchange rate is very likely to hold in a high position over the weekend.
The Pound Sterling to Japanese Yen exchange rate has advanced to a high today of 178.4100.
Japanese Yen (JPY) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Japanese Yen,
,US Dollar,0.0089,
Japanese Yen,,Euro,0.0071,
Japanese Yen,,Pound,0.0056,
Japanese Yen,,Australian Dollar,0.0101,
US Dollar,,Japanese Yen,111.6234,
Euro,,Japanese Yen,140.2358,
Pound Sterling,,Japanese Yen,178.5014,
Australian Dollar,,Japanese Yen,98.3699,
[/table]
