A generally mixed-bag of Japanese data, erring towards the negative, has seen the Yen soften against the Pound. Meanwhile, a positive Gross Domestic Product publication has seen Sterling trending higher against many of its most traded currency peers.
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 177.9900.
Poor British data on Monday had halted the uptrend caused by Bank of England Governor Mark Carney’s hawkish speech last Thursday. BoE Consumer Credit, Mortgage Lending and Mortgage Approvals all declined from the previous figures and failed to meet with the median market forecasts.
Despite relatively positive domestic data on Friday and mounting geopolitical tensions, the Japanese Yen failed to strengthen against the majority of its most traded currency rivals. This was as a result of Health Minister Yasuhisa Shiozaki stating that the pension fund will conduct some reforms within existing law.
The Pound Sterling to Japanese Yen exchange rate has hit a low today of 177.4000.
Tuesday’s British data has been relatively mixed but Sterling has avoided declining against many of its major peers. The GfK Consumer Confidence Survey was forecast to drop from 1 to 0, but the actual data showed a fall to -1. Nationwide House Prices printed negatively although the data has little weighting in terms of the provocation of volatility.
More positive for Sterling was the UK second-quarter Gross Domestic Product data. The quarter-on-quarter GDP was revised from 0.8% to 0.9% in the second quarter, and the yearly GDP maintained the previous figure of 3.2%.
Japanese data on Tuesday has been relatively mixed but mostly negative. Household Spending improved upon the previous figure but declined beyond the market consensus, with the actual data in at -4.7%. Jobless Rate fell from 3.8% to3.5% and Industrial Production dropped below the forecast figure with contraction of -2.9%. Retail sales data was reasonably positive but it hasn’t been enough to overshadow the negative factory output and low household spending.
Forecast for the Pound to Japanese Yen Exchange Rate
With a large amount of Japanese economic data due out on Wednesday, expect volatility for the GBP/JPY exchange rate. In particular the Japanese Manufacturing PMI, Large All Industry Capex, Large Manufacturers Index and Large Manufacturers Outlook will be of interest to those invested in the Yen.
There is only one solitary British data publication on Wednesday and the direction taken by Sterling is likely to be governed that. The seasonally adjusted Manufacturing PMI is forecast to rise a little from the previous figure of 52.5 to 52.7.
The Pound Sterling to Japanese Yen exchange rate has reached a high today of 178.1100.
