The Pound Japanese Yen (GBP/JPY) exchange rate has edged higher this morning as investors seek out riskier stocks following a strengthening market mood.
At the time of writing the GBP/JPY exchange rate are trending around the 153.2 level as Sterling investors keep an eye on domestic coronavirus developments.
Pound (GBP) Supported by UK Coronavirus Developments
The Pound has been steadily rising against the Japanese Yen this morning as the UK records a further fall in daily coronavirus cases.
Sterling investors have been looking towards ongoing coronavirus developments from the UK over the past days as the government yesterday announced travel corridor for fully vaccinated citizens from the EU and US.
Speaking to UK television this morning, the foreign secretary Dominic Rabb discussed the proposed opening of the UK’s border:
‘I know it has been frustrating, I know it has been an inconvenience, there’s been lots of things in this pandemic that have been inconvenient.’
‘But the truth is the whole tide – whether it is domestic restrictions, international – is going in the right direction of opening but we do need to just be careful, make sure we are doing it at the right time.’
‘We’ve done the job we had to do domestically and as we see other countries catch up if you like, I think we are increasingly confident that more countries will go either on amber or on to green.’
Japanese Yen (JPY) Suffers on Risk-On Mood
The Japanese Yen (JPY) has struggled to find any meaningful support against the majors today as a risk-on mood and ongoing coronavirus situation in Japan limits the appeal of the safe-haven currency.
Whilst Japan had been relatively untouched by coronavirus, the arrival of the Olympics appears to have driven up cases.
It comes as there were more than 9,500 cases reported in Japan on Wednesday, with 3,177 of those being in Toyko.
Shigeru Omi, the government’s senior health adviser commented on the ongoing outbreak:
‘While almost nothing is helping to slow the infections, there are many factors that can accelerate them. The biggest risk is the lack of a sense of crisis, and without it, infections will further expand and put medical systems under severe strain.’
‘We have never seen infections spread so rapidly. The biggest crisis is that society does not share a sense of risk.’
Pound Japanese Yen Exchange Rate Outlook: Japanese Data in Focus
Tomorrow, a lack of economic data from the UK will see investors continue to keep an eye on any further domestic coronavirus developments.
For Japanese Yen traders a slew of economic data from Japan is expected to drive movement in the currency heading into the weekend.
The latest unemployment rate and retail sales figures from the country could provide JPY exchange rates with a boost heading into the weekend.