Continuing uncertainty regarding whether the Federal Reserve will actually act on the stimulus-tapering hints it’s been dropping over the last few months weighed on risk-appetite during Australasian trading.
The Japanese Yen exchange rate was in the region of 158.6240 Yen to one British Pound as of 11:05 am GMT
Consequently, the Yen advanced on peers like the Pound. The currency also rose by the most for over a week against the Euro and strengthened against safe-haven rival the US Dollar.
The USD/JPY pairing has been under pressure since last week, when the Federal Open Market Committee stated that it would need to see more concrete signs of US economic improvement before it considered trimming the nation’s 85 billion Dollar bond-buying scheme.
Although the odds of the Fed reducing stimulus in October spiked last week in response to encouraging comments issued by Federal Bank of St Louis President James Bullard, the US Dollar largely shed those gains over the weekend.
The GBP/JPY exchange rate hit a high of 159.5130
While movement in the GBP/JPY pairing is likely to be limited during European trading due to a lack of influential UK news, the USD/JPY pairing may experience volatility in response to the publication of preliminary US Markit PMI data and the speeches of Federal Reserve Bank of Dallas President Richard Fisher, Atlanta President Dennis Lockhart and New York President William C. Dudley. Any reference to a potential timeline for reining in stimulus will be of particular interest.
Japanese data to look out for this week includes Wednesday’s small business confidence index and machine tool orders report and Friday’s national consumer price index.
UK GDP figures, scheduled for publication on Thursday, could also impact GBP/JPY.
Current Japanese Yen (JPY) Exchange Rates:
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.9200 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 158.6240 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 133.5680 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 82.8866 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 93.1436 <
(Correct as of 11:05 GMT)