Although UK services PMI for July smashed economists’ expectations, the Pound retained recent declines against the Yen as the European session continued.
The Japanese Yen exchange rate was in the region of 151.1310 Yen to one British Pound as of 10:10 am GMT
With the safe-haven currency garnering support from last week’s lacklustre US employment news, the Yen traded in the region of 150.71 Yen per Pound, despite a gauge of UK services coming in at 60.2 rather than 57.4.
Over the course of this week GBP/JPY fluctuations could be driven by the publication of the Bank of England inflation report, the NIESR GDP estimate for July and UK trade balance figures.
Japanese data, including the Bank of Japan’s monthly economic report, will also be of interest.
The GBP/JPY exchange rate hit a high of 152.2840
Meanwhile, last week’s disappointing employment data for the US continues to fuel speculation surrounding the odds of the Federal Reserve tapering stimulus in September.
With the US Dollar broadly declining the Yen was able to advance on its safe-haven counterpart.
As senior forex strategist Jane Foley observes: ‘The disappointment from payroll data last week makes people question when the Federal Reserve will be able to start tapering its bond purchases. The market is generally long dollars and that means the currency is going to open up to more disappointment. The currency will be hard pressed to be much higher unless the upcoming data is particularly strong’.
Additional USD/JPY movement could occur in the hours ahead in response to the US ISM non-manufacturing composite index. Another piece of disappointing data may allow the Yen to extend gains.
Volatility could also be on the cards for the Asian asset as a result of the Bank of Japan’s rate decision and monetary policy statement, taking place on Thursday.
Current Japanese Yen (JPY) Exchange Rates:
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.4300 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.1310 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.8920 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.7003 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 87.7654 <
(Correct as of 10:10 GMT)
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