As the European session got underway the Yen softened slightly against its UK counterpart as the Pound was bolstered by some better-than-forecast domestic data.
The Japanese Yen exchange rate was in the region of 151.1540 Yen to one British Pound as of 10:15 am GMT
Although economists expected UK construction PMI to rise in July, they foresaw a modest increase of 0.5.
However, the index actually surged from 51.0 to 57.0.
In a statement accompanying the data Markit economist Tim Moore asserted: ‘July’s survey highlights a new wave of optimism across the UK construction sector, with companies reporting a pace of expansion in excess of anything seen over the past three years. The swing back to output growth broadened to include commercial and civil engineering activity during July, although housing construction remains the one thing crucial to the sector’s strong upturn at present.’
The strong result helped boost the Pound against peers including the Yen.
The GBP/JPY exchange rate hit a high of 151.1540
The Asian asset also slipped against its US counterpart overnight as the hope that today’s US employment data will show that the unemployment rate in the world’s largest economy declined to 7.5 per cent supported the ‘Greenback’.
As it stands the Yen is in line to post a 1.3 per cent weekly drop against the US Dollar, and if today’s employment reports surprise to the upside further Yen losses are likely.
Prior to the influential data release foreign exchange expert Masato Yanagiya commented: ‘The Fed is most likely to start to taper monetary stimulus in September. The Dollar will remain well bid if the jobs figures [...] are good.’
Next week’s Bank of Japan rate decision will be of particular interest, but Japanese current account and consumer confidence data could also trigger Yen fluctuations.
Current Japanese Yen (JPY) Exchange Rates:
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6200 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.1540 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.7600 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 78.3548 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 88.6486 <
(Correct as of 10:15 GMT)