The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate rallied by around 0.30% on Wednesday morning.
After US stock futures signalled gains, demand for safe-haven assets dampened. With the US Dollar holding a high position in spite of less-than-ideal data, the Yen declined versus nearly all of its major peers. The Pound, meanwhile, edged higher against many of its rivals thanks to a fractional improvement in the UK Shop Price Index.
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 180.1400.
Yesterday…
The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate softened by a massive -1.37% on Tuesday afternoon.
This is largely due to increased demand for safe-haven assets amid crashing oil prices and geopolitical tensions regarding the Greek political situation. Softened demand for the US Dollar, after failure to cap the oil declination, also supported Yen gains. Pound Sterling, meanwhile, plummeted against the majority of its most traded currency rivals after UK services failed to meet with forecast growth.
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 181.0900.
Pound Sterling (GBP) Exchange Rate Dives on Services
After British economic data printed disappointingly, the Pound slumped versus many of its major peers. The UK Services PMI was forecast to dip from 58.6 to 58.5, but the actual result dropped to 55.8. In addition, the Composite PMI failed to meet with the market consensus of a drop from 57.6 to 57.4, but the actual result fell to 55.2.
Chris Williamson, Chief Economist at Markit, stated; ‘The survey data provide policymakers with a mixed bag of news on the health of the economy at the end of last year, adding further uncertainty about the outlook for interest rates.’
The Pound Sterling to Japanese Yen exchange rate dropped to a low today of 180.3300.
Japanese Yen (JPY) Exchange Rate Advances on Safe-Haven Demand
With oil prices continuing to decline and fears regarding the Greek political situation growing, risk sentiment dampened. The Yen, with its safe-haven qualities, advanced as a result of the risk aversion strategies. Aiding the Yen’s uptrend was better-than-expected Japanese composite and services PMIs.
Pound Sterling to Japanese Yen (GBP/JPY) Exchange Rate Forecast to Continue Trending Lower
With risk aversion strategies showing no sign of diminishing, the Pound Sterling to Japanese Yen exchange rate is likely to continue trending lower on Tuesday.
The Pound Sterling to Japanese Yen exchange rate reached a high today of 182.3400.
