Sterling Today: GBP EUR Exchange Rate Steady, GBP JPY Exchange Rate Lower

April 25, 2014 - Written by Minesh Chaudhari

STORY LINK Sterling Today: GBP EUR Exchange Rate Steady, GBP JPY Exchange Rate Lower

Mildly disappointing UK retail sales data earlier today has held back the Pound euro exchange rate GBP/EUR. Meanwhile, the Pound Yen exchange rate GBP/JPY has edged lower following a sharp increase in Tokyo’s level of inflation.

This morning’s UK Retail Sales numbers for March came out marginally better than February’s counterpart figure. However, the year-on-year showing of 4.2% was well below the 4.5% which analysts had been anticipating. The increase in comparison to March 2013’s counterpart figure was attributed to the severe cold snap which hit the UK at the start of last year which served to subdue domestic demand.

Analysts had been concerned that there was potential for the figure to disappoint given that British citizens have enjoyed a late Easter holiday this year – the moveable feast traditionally triggers a spike in sales of DIY and household goods. The upshot of the shop sales results saw the Pound hold its own against both the US Dollar and the euro, meaning that the GBP EUR exchange rate and GBP USD exchange rate are currently changing hands at 1.2154 and 1.6815 respectively.

Elsewhere, figures published during last night’s Asian session have revealed that price rises in the Japanese capital of Tokyo have increased at their fastest pace for over two decades this month following the countrywide increase in sales tax from 5% to 8% at the start of the month. The one-off increase in consumer prices in Asia’s second largest economy is unlikely to be enough to convince investors that Japanese Premier Shinzo Abe has re-inflated his economy out of deflation – expect the number to drop back again next month. In the meantime, the news has triggered some support for the Japanese Yen which sent the Pound Yen exchange rate down to as low as 171.49 GBP/JPY earlier on.

The final data release of note for this week comes at 17:00hrs BST this afternoon with the publication of French labour market numbers. Analysts will be looking for the data to point to a decrease in the total number of jobseekers in the Gallic nation in order to trigger a late forward move for the euro Pound exchange rate EUR/GBP.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Daily Currency Updates Euro Forecasts Euro Pound Forecasts Japanese Forecasts