Although the Pound broadly softened as the European session progressed and UK housing/services data failed to meet expectations, the Yen retained declines against its British counterpart.
The asset posted modest but widespread losses during local trading as Asian stocks advanced.
The Japanese Yen exchange rate was in the region of 158.4000 Yen to one British Pound as of 10:20 am GMT
The Yen had previously achieved a five-week high against its US counterpart as the ongoing partial federal shutdown kept pressure on the ‘Greenback’ and supported the safe-haven currency.
But the Yen lost ground as Ministry of Finance figures showed that Japanese investors purchased almost 700 billion Yen of overseas bonds last week.
The GBP/JPY exchange rate hit a high of 158.9410
Meanwhile, one former board member of the Bank of Japan asserted that the central bank will refrain from adding to the unprecedented level of stimulus implemented this year until the second quarter of 2014.
Atsushi Mizuno, who was a board member until 2009, was quoted as saying: ‘It is too early to judge whether additional monetary easing will be necessary […] The BOJ has said they have done enough, and will do more if necessary, but collecting evidence supporting the need to do more will take a lot of time.’
While the Bank of Japan’s rate decision and monetary policy decision are likely to impact the Yen before the weekend, US developments can be expected to drive the majority of market movement.
As currency strategist Mike Jones observes; ‘The focus is on the US, and the ongoing pushback we’re seeing in tapering expectations, and the toll that’s taking on US bond yields and the US Dollar. The fiscal shenanigans in Washington mean more potential for volatility and choppiness.’
Tomorrow additional GBP/JPY movement could result from the UK Lloyds employment confidence gauge.
Although US non-farm payrolls is the week’s most significant data release, if the Federal shutdown continues the report is unlikely to be released tomorrow at 13:30 as scheduled.
Current Japanese Yen (JPY) Exchange Rates:
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.8200 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 158.4000 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.9570 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.2703 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.7376 >
(Correct as of 10:20 GMT)
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