Pound Sterling to Japanese Yen (GBP/JPY) Exchange Rate Trending within Limited Range on Safe-Haven Demand

March 31, 2015 - Written by John Cameron

STORY LINK Pound Sterling to Japanese Yen (GBP/JPY) Exchange Rate Trending within Limited Range on Safe-Haven Demand

The Pound Sterling to Japanese Yen exchange rate was trending within a narrow range on Tuesday. After domestic data produced positive results, the Pound strengthened versus many of its major peers.

This is despite ongoing political uncertainties weighing on investor confidence as the general election fast approaches. The Japanese Yen, meanwhile, also advanced versus the majority of its most traded currency rivals. This is due to heightened demand for safe-haven assets amid low crude prices and ongoing tensions regarding Greece’s future in the Eurozone. Additional Yen appreciation is as a result of positive domestic data. The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 177.6600.

Pound Sterling Exchange Rate Advances on Positive Data

British data printed positively on Tuesday and caused the Pound to strengthen versus many of its peers. The GfK Consumer Confidence Survey advanced beyond the median market forecast of a rise from 1 to 2, with the actual data reaching 4.GfK managing director of social research UK Nick Moon said: ‘At +4, the index is the highest it has been for almost 13 years, and it has gone up a striking eight points in just three months. Reaction to the Budget has thus far been muted, but if people warm to it over the next few weeks then we may well see a further increase in the index next month. A consistently rising index in the run-up to the election is likely to be good news for the Government.’In addition, fourth-quarter Gross Domestic Product showed growth of 3% on the year which bettered the market consensus of 2.7% growth. Chancellor George Osborne hailed the figures, writing on Twitter: ‘GDP revised upwards from 2.6% to 2.8% for 2014. Confirms UK as clearly fastest growing major advanced economy.’ The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate dropped to a low today of 177.0800.

Japanese Yen Exchange Rate Bolstered by Safe-Haven Demand

With crude prices resilient to the downside, and with mounting anxieties regarding the potential for a Greek exit from the Eurozone, trader risk-appetite dampened considerably. The Yen saw increased demand on Tuesday thanks to its safe-haven qualities. Positive domestic data also aided the Yen appreciation. February’s Construction Orders increased by 1% on the year, bettering estimates of a 0.38% increase. In addition, February’s Housing Starts avoided the forecast declination of -5.97%, with the actual result showing house starts cooled by -3.1% on the year.

Pound Sterling to Japanese Yen Exchange Rate Forecast to Hold Steady

Given the lack of domestic data to provoke changes, and with trader risk sentiment showing no signs of an immediate change, the Pound Sterling to Japanese Yen exchange rate is likely to continue trending within a limited range over the remainder of the European session. The Pound Sterling to Japanese Yen exchange rate advanced to a high today of 178.0700.

Exchange Rates Today

The Pound to Japanese Yen conversion rate is +0.09 pct higher at 177.90866 GBP/JPY.
The Euro to Japanese Yen exchange rate today is converting -0.89 per cent lower at 128.82553 EUR/JPY.
The US Dollar to Japanese Yen exchange rate is -0.17 pct lower with a conversion rate of 1 USD equals 119.82600 JPY.
The Swiss Franc to Japanese Yen exchange rate converts -0.39 per cent lower at 1 CHF is 123.57910 JPY.
The Canadian Dollar to Japanese Yen exchange rate is -0.3 pct lower with a conversion rate of 1 CAD equals 94.41028 JPY.
The Hong Kong Dollar to Japanese Yen exchange rate today is converting -0.15 per cent lower at 15.45536 HKD/JPY.
The Australian Dollar to Japanese Yen conversion rate is -0.5 pct lower at 91.41526 AUD/JPY.
The New Zealand Dollar to Japanese Yen exchange rate is -0.21 pct lower with a conversion rate of 1 NZD equals 89.80539 JPY.
The Norwegian Krone to Japanese Yen exchange rate converts -0.97 per cent lower at 1 NOK is 14.83902 JPY.

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TAGS: Japanese Yen Forecasts