Pound Sterling Gains vs Yen

January 29, 2015 - Written by Tim Boyer

STORY LINK Pound Sterling Gains vs Yen

The Pound to Yen exchange rate advanced on Thursday despite UK House Prices falling in January. Property values decreased from 7.2% to 6.8% on the year in January, a little higher than the 6.6% expected.

Industry expert Robert Gardner commented: ‘Although house price growth continued to outpace income growth by a significant margin, affordability does not appear stretched at a national level. The cost of servicing a typical mortgage remains close to the long run average as a share of take home pay, in part thanks to the ultra low level of mortgage rates.’

Gardner went on to suggest that supply levels would be the main factor in determining price growth. Gardner commented: ‘Surveyors continue to report a dearth of new homes coming on to the market, which may help to explain why house price growth has remained fairly robust despite a more noticeable decline in housing demand since the summer.’ In addition, the UK released CBI Reported Sales figures which fell from 61 to 39, a little above the 32 prediction.

However, the Japanese Yen could experience massive fluctuations on Thursday with the release of Japanese Consumer Price Index stats. Inflation is expected to fall from 2.4% to 2.3% on the year in December which could pressure the Yen lower. In addition, Japanese Household Spending and Jobless Rate figures will be published and could have a moderate impact on Yen trading. At present, Household Spending is expected to increase from -2.5% to -2.3% in December on the year. Unemployment in Japan is predicted to remain at 3.5% in December.

This week saw the Japanese Economics Minister Akira Amari state that the Bank of Japan could be offered a little slack in its ambition to meet the 2% inflation target as the price of oil declines. Reuters stated: ‘Cheap oil compounds the challenge for BOJ’s aim of hitting its 2% inflation goal around the coming fiscal year that starts in April, which analysts see as impossible to achieve.’

The central bank recently cut its inflation expectations as the price of oil falls all over the world. However, the Yen has also weakened recently—a development which has seen an increase in Japanese exports. Economist Izumi Devalier commented: ‘Slowly but surely, the weak Yen is beginning to lift Japanese exports.’ Stronger exports could help to encourage growth in the future after the Japanese economy experienced two quarters of contraction in 2014.

Top 10 Yen Exchange Rates Today

The Pound to Yen exchange rate converts +0.23 per cent higher at 1 GBP is 178.44242 JPY.
The Euro to Yen exchange rate today is converting +0.51 per cent higher at 133.35512 EUR/JPY.
The US Dollar to Yen exchange rate today is converting +0.34 per cent higher at 117.99250 USD/JPY.
The Swiss Franc to Yen converts -0.95 per cent lower at 1 CHF is 128.38529 JPY.
The Canadian Dollar to Japanese Yen conversion rate is +0.23 pct higher at 94.09853 CAD/JPY.
The Hong Kong Dollar to Japanese Yen today is converting +0.33 per cent higher at 15.21943 HKD/JPY.
The Australian Dollar to Yen is -1.12 pct lower with a conversion rate of 1 AUD equals 91.75392 JPY.
The New Zealand Dollar to Japanese Yen is -0.33 pct lower at 85.80828 NZD/JPY.
The Norwegian Krone to Japanese Yen exchange rate converts +0.65 per cent higher at 1 NOK is 15.12258 JPY.
The Swedish Krona to Yen conversion rate is +0.99 pct higher at 14.30631 SEK/JPY.

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