The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate is currently trending in the region of 170.9100, shifting from a daily low of 170.5800 and a high of 171.2300. Movement is negligible at this time as a result of a lack of UK domestic data.
Yesterday’s nightmarish day for the Pound has had little chance of recovery with a lack of UK domestic data released today.
Despite a positive result concerning unemployment which saw a dip from 6.5% to 6.4%, yesterday saw Sterling fall across the board. This was due, in part, to lower-than-anticipated average weekly earnings which plummeted to -0.2% from the previous figure of 0.4%. The miscorrelation between falling unemployment and falling average wage sparked negative sentiment amongst traders.
The issues for Sterling were compounded with the release of the Bank of England’s (BoE) Inflation Report. The dovish report contributed considerably to the bearish nature of the Pound as the committee decided to maintain their monetary policy which has remained unchanged since 2009. BoE Governor Mark Carney spoke of a change in focus from unemployment to average wage. The lack of policy alteration and a change in focus has all but quashed any speculation of an interest rate hike before 2015.
Conversely yesterday was reasonably positive for Japanese economic standing and the strength of the Yen. The Japanese Yen had already been trending on an upsurge as traders flock to safe haven currencies in light of the various geopolitical issues affecting the globe. The Yen was bolstered further yesterday with a higher-than-forecast Japanese Gross Domestic Product figure of -6.8%.
The Pound Sterling to Japanese Yen exchange rate has hit a low today of 170.5800.
The only UK domestic data release today was the RICS House Price Balance which doesn’t have a huge influence on Sterling movement. The result posted saw a drop to 49% from 52%. The lack of influential data has given no chance for the Pound to repair yesterday’s damage and, as a result, Sterling has continued to trend downwards against the majority of its peers.
Forecast for the Pound Sterling to Japanese Yen Exchange Rate
Tomorrow will be extremely important to gauge UK economic standing and the strength of the Pound. The year-on-year Gross Domestic Product Report is forecast to remain at 3.1%. Should the result prove better than expected it will go a long way towards damage limitation. However, should the result be worse than anticipated it will be disastrous for the economy, and the Pound will suffer yet more losses.
There are no Japanese domestic data releases tomorrow so look towards geopolitical issues to gauge movement.
The Pound Sterling to Japanese Yen exchange rate has hit a high today of 171.2300.
GBP to JPY Gains Moderately after UK GDP Growth
It will likely be some time before the Pound recovers its losses from the disastrous past few days. The combination of waning weekly wage and a delay to an interest rate hike has seen Sterling hit record lows against most of its major peers.
Today’s UK domestic data has been a little less damaging. Quarter-on-quarter Gross Domestic Product (GDP) stayed faithful to the forecast figure of 0.8%. Year-on-year GDP posted a fractional gain from 3.1% to 3.2%. The better-than-expected data has not had the desired impact, however, as traders continue to focus on the Bank of England’s delayed interest rate hike.
The Pound to Japanese Yen exchange rate has gained slightly which is likely to be a combination of the UK GDP growth and the easing geopolitical tension between Russian and Ukraine.
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