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Pound to Yen Exchange Rate Today: GBP to JPY Lower Despite Continued QE

October 16, 2014 - Written by David Woodsmith

The British Pound vs Japanese Yen fell on Thursday's forex exchange rate markets despite the continued QE’s Impact on the safe-haven JPY.



pound to yen todayThe Pound to Japanese Yen (GBP/JPY) exchange rate has been trending lower on Thursday as the Yen’s safe-haven status attracts investors.

In light of recent global conflicts, fear of the spread of Ebola and International Monetary Fund (IMF) warnings that the global economy is heading for a slowdown, safe-haven currencies such as the Yen, Swiss Franc (CHF) and US Dollar (USD) have been favoured.

Forex expert Naohiro Nomoto commented: ‘There’s a general unease across markets.’

The Pound Yen exchange rate today is converting +0.93 per cent higher at 171.06876 GBP/JPY.
The Euro to Yen rate today is converting +0.21 per cent higher at 136.19023 EUR/JPY.
The US Dollar to Yen exchange rate converts +0.3 per cent higher at 1 USD is 106.33050 JPY.
The Canadian Dollar to Japanese Yen conversion rate is +0.39 pct higher at 1 CAD equals 94.45974 JPY.
The Aus Dollar to Yen exchange rate is -0.1 pct lower with a conversion rate of 1 AUD equals 93.12000 JPY.

Don't forget if you are waiting to find the best exchange rate for a currency transfer, then you're best bet is to set up your future rate order with a foreign exchange broker!

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Japanese Yen Backed by BOJ Quantitative Easing Continuation



The Yen continued trending higher in spite of Bank of Japan (BOJ) Governor Haruhiko Kuroda stating that quantitative easing (QE) will continue until the price target is reached.

Kuroda commented: ‘We’ve been saying that we will strive to achieve our 2% inflation target... and maintain our quantitative and qualitative easing (QQE) until that level is sustained in a stable manner. We have no pre-set time limit for QQE.’

The central bank began the stimulus measure in April 2013 with the vow of reaching the 2% inflation target within a guesstimated two years.

Some economists have proposed that the continued use of the stimulus will encourage hyperinflation—swiftly increasing and severely high levels of consumer prices.

However, Kuroda has eased concerns stating: ‘We won’t allow inflation to accelerate well past 2%.’

As quantitative easing weakens the nation’s currency, Kuroda has defended the weaker Yen. Kuroda asserted: ‘Generally speaking, the depreciation of the Yen has positive effects by increasing exports, improving profits at companies operating globally and leading to higher stock prices.’ Wednesday also saw final Japanese Industrial Production figures contract in August by -1.9% more than the -1.5% economists had initially forecast.

Pound Sterling Firmer against Euro, US Dollar & Others After Unemployment Levels Sink



The Pound advanced against a basket of other majors on Wednesday after the revelation that UK unemployment fell to its lowest level in six-years at 6.0%.

Economists had forecast a slight dip from the former 6.2% down to 6.1%. However, the surge in employment saw jobseekers total under two million for the first time since the onset of the global financial crisis in 2008.

Wednesday’s figures showed Claimant Count fall to 2.8% in September from 2.9%. Employment Change was better in the three months to August than economists had forecast at 46K, but far less than the previous 74K.

Moreover, one area investors watch closely is Wage Growth.

UK unemployment is sinking far faster than wages are expanding, and the Bank of England (BoE) has previously stated it believes that earnings are unlikely to improve until around July 2015.

The jobs figures showed that Average Weekly Earnings grew by only 0.7% on the year in the three months to August.

Markit Chief Economist Chris Williamson has commented: ‘The puzzle remains as to why the tightening of the labour market has failed to feed through into higher wages. The normal laws of supply and demand do not appear to be applying to the current labour market, at least according to the official data.’

Pound to Yen Exchange Rate Forecast



UK data is thin on the ground in the second half of the week but the GBP to JPY may see fluctuations on Friday from Japan Buying Foreign Bonds and Stocks figures, as well as Nationwide and Tokyo Department Store Sales.

In addition, any comments from Bank of England or Bank of Japan officials may alter the Pound to Japanese Yen exchange rate, as could any global political developments.

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