After Japan’s Prime Minister Shinzo Abe announced he was considering postponing a planned sales-tax increase, the Pound Sterling to Japanese Yen (GBP/JPY) exchange rate strengthened by around 1.03%. Meanwhile, the Pound has enjoyed an upsurge against most of its major peers thanks to a modest improvement in retail sales.
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 183.8200.
Yen (JPY) Drops on Sales-Tax Delay
After Prime Minister Shinzo Abe considered postponing a planned sales-tax hike and prepared to call a snap election next month, the Yen declined to its weakest level in seven years against the US Dollar.
‘There was talk that the next stage of the consumption tax could be delayed and then threats by the Prime Minister that he might have to resign,’ said Jane Foley, senior foreign-exchange strategist at Rabobank International in London. ‘This is a knee-jerk reaction and I doubt if it’s going to remain on this sort of trajectory for that long. Yet, the momentum in the market for a rise in the Dollar against the Yen is certainly there.’
The Pound Sterling to Japanese Yen exchange rate has dropped to a low today of 181.7400.
Retail Sales Growth Boosts the Pound (GBP)
Tuesday’s single British economic data publication printed above expectations, allowing the Pound to advance against the majority of its most traded currency rivals. The British Retail Consortium’s (BRC) Like-for-Like Sales eclipsed the median market forecast of a rise from -2.1% to -0.5%, with the actual result reaching the flat line figure of 0.0%.
The growth, however, is still relatively modest as David McCorquodale, head of retail at KPMG explains; ‘Sadly, this warmer weather has left many fashion retailers with a substantial stock overhang, raising the question of earlier and deeper discounts as we get closer to Christmas. Retailers need a nippy November to help them sell their winter stock before the season’s out.’
Pound Sterling to Japanese Yen (GBP/JPY) Exchange Rate Forecast to Fluctuate
With mounting negative sentiment towards the Japanese Yen, the GBP/JPY exchange Rate is likely to hold gains over the course of Tuesday. However, if Tuesday evening’s Japanese data meets with median market predictions, the Yen may recover some of its losses.
The Pound Sterling to Japanese Yen exchange rate has reached a high today of 183.9700.
UPDATE
GBP/JPY Exchange Rate Advances on Poor Japanese Data
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 183.9000.
As traders continue to digest Japanese Prime Minister Shinzo Abe’s sales-tax delay, the Japanese Yen has continued to decline against nearly all of its major peers. Compounding the Yen downtrend has been disappointing consumer confidence, machine tool orders, economy watchers survey and bankruptcies.
Meanwhile, the Pound has softened a little against some of its currency rivals as foreign currency movement provokes Sterling changes.
GBP/JPY Exchange Rate Declines on Japanese Data
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 183.6200.
The Japanese Yen has been fluctuating against its major peers amid speculation Japan’s Prime Minister Shinzo Abe is considering dissolving parliament and delaying a sales-tax increase. However, positive domestic data on Tuesday evening has seen the Yen appreciate against many of its most traded rivals. The Tertiary Industry Index was forecast to gain from -0.1% to 0.8%, but the actual result increased to 1.0%.
Sterling, meanwhile, has generally depreciated against its major peers due to mounting negative sentiment towards the Bank of England. The British central bank sacked its Chief Currency Dealer Martin Mallett for failing to alert his superiors that traders were sharing information about client orders.
‘This was an error of judgment for which he should be criticized,’ Lord Grabiner said in the report. ‘He was aware of a market practice which he thought could involve collusive behaviour and lead to market participants being disadvantaged and he failed to raise this with the appropriate people.’
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,0.0086,
Japanese Yen,,Euro,0.0069,
Japanese Yen,,Pound,0.0054,
Japanese Yen,,Australian Dollar,0.0099,
US Dollar,,Japanese Yen,115.5098,
Euro,,Japanese Yen,143.8587,
Pound Sterling,,Japanese Yen,183.4728,
Australian Dollar,,Japanese Yen,100.2148,
[/table]
