Although the Yen is still trapped in a bearish relationship with the US Dollar as a result of last week’s US non-farm payrolls report, the Asian asset was able to advance on the Pound following the publication of Japanese current account and economic outlook data.
The Japanese Yen exchange rate was in the region of 158.6770 Yen to one British Pound as of 10:30 am GMT
In a quiet European news day Sterling remained slightly softer against the Yen as data revealed that Japan’s current account surplus was at a five-month high.
Figures showed an unexpected expansion in Japan’s current account surplus in September as a softer Yen bolstered income from overseas investments.
The surprising result prompted this response from senior economist Masamichi Adachi; ‘The current account will probably remain in surplus as a robust income surplus will make up for the trade deficits. Along with fuel, robust domestic demand is also pushing up imports, so we are unlikely to see a trade surplus in the near future.’
The GBP/JPY exchange rate hit a low of 158.1550
A separate report later showed that the Eco Watchers Outlook Survey rose from 54.2 to 54.5 in October.
Meanwhile, the Pound was holding relatively steady against the majority of its most traded peers ahead of this week’s Bank of England inflation report. The central bank is also due to deliver economic forecasts for the UK. If the BoE upwardly revises its growth projections for the UK Sterling could climb in the days ahead.
The Yen remained softer against the US Dollar however after the American asset retained gains recorded after last week’s positive US non-farm payrolls report.
Federal Reserve Officials Narayana Kocherlakota and Dennis Lockhart are also scheduled to speak tomorrow and may offer hints concerning a more definitive timeline for tapering easing.
As one Tokyo-based currency strategist noted; ‘We expect the Dollar to strengthen gradually as US monetary policy is normalised. The ECB still retains a policy guidance that’s inclined toward a further rate cut.’
In the days ahead additional movement in the GBP/JPY pairing could occur in response to Japan’s consumer confidence index and machine tool orders report as well as UK inflation and unemployment data.
Current Japanese Yen (JPY) Exchange Rates:
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.0500 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 158.6770 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.6220 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.7162 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.7796 <
(Correct as of 10:30 GMT)