- The GBP/JPY goes back to about 195.65 while the Japanese Yen (JPY) wins in front of most of his peers.
- According to the estimates reviewed, the Japanese economy remained flat in the first quarter of the year.
- Investors expect the employment data of the United Kingdom to obtain new clues about the monetary policy perspectives of the BOE.
The GBP/JPY pair goes back to about 195.65 during the European negotiation hours on Monday from the maximum intradic of 196.00. The Par faces a slight sales pressure as the Japanese Yen (JPY) wins behind the reviewed data of the Gross Domestic Product (GDP) of the first quarter that showed that the economy remained flat.
And in Japanese price today
The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. Yen Japanese was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.22% | -0.27% | -0.50% | -0.09% | -0.31% | -0.49% | -0.22% | |
| EUR | 0.22% | -0.07% | -0.30% | 0.11% | -0.07% | -0.28% | -0.02% | |
| GBP | 0.27% | 0.07% | -0.14% | 0.18% | 0.00% | -0.22% | 0.05% | |
| JPY | 0.50% | 0.30% | 0.14% | 0.42% | 0.14% | -0.04% | 0.17% | |
| CAD | 0.09% | -0.11% | -0.18% | -0.42% | -0.24% | -0.40% | -0.13% | |
| Aud | 0.31% | 0.07% | -0.00% | -0.14% | 0.24% | -0.21% | 0.06% | |
| NZD | 0.49% | 0.28% | 0.22% | 0.04% | 0.40% | 0.21% | 0.27% | |
| CHF | 0.22% | 0.02% | -0.05% | -0.17% | 0.13% | -0.06% | -0.27% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
According to preliminary estimates, the Japanese economy was constantly contracted by 0.2%. In annualized terms, the economy decreased at a slower rate of 0.2%, compared to a contraction of 0.7%.
The Japanese Cabinet Office reported that GDP growth in the period from January to March was reviewed to rise thanks to upward review in private consumption data, which represents more than half of the economy. Household consumption increased by 0.1%, compared to flat performance observed in preliminary estimate.
Meanwhile, Japanese Prime Minister Shigeru ishiba has warned that the increase in interest rates by the Bank of Japan (BOJ) could affect government spending plans, stating that higher interest rates could increase the cost of funds. Tokyo’s concerns about the increase in debt cost could force operators to reduce bets that support BOJ to increase interest rates again this year.
In the United Kingdom (UK) region, investors expect employment data for the three months that ended in April, which will be published on Tuesday. The labor market report is expected to show that the ILO unemployment rate accelerated to 4.6% from the previous reading of 4.5%. The average profits, both including and excluding bonds, grew by 5.5% year -on -year.
Investors will pay special attention to the United Kingdom labor market data, as they will influence market expectations about the monetary policy of the Bank of England (BOE). The BOE is almost certain that it will maintain stable interest rates in 4.25% at the June 19 policy meeting.
LIBRA ESTERLINA FAQS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
