- The GBP/JPY goes back to about 197.35 after visiting a maximum of almost six months around 198.20.
- The decrease in the price of oil has strengthened the demand of Japanese Yen.
- The optimistic data of the preliminary PMI of the United Kingdom for June have supported the pound sterling.
The GBP/JPY torque corrects slightly about 197.35 during the European negotiation hours on Tuesday after visit a maximum of almost six months around 198.20 The day before. The cross faces a slight sales pressure as the Japanese yen (JPY) wins due to a strong fall in the price of oil, after the high fire between Israel and Iran.
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 | -0.29% | -0.33% | -0.51% | -0.11% | -0.57% | -0.61% | 0.03% | |
| EUR | 0.29% | -0.08% | -0.24% | 0.17% | -0.28% | -0.76% | 0.33% | |
| GBP | 0.33% | 0.08% | -0.16% | 0.26% | -0.20% | -0.67% | 0.26% | |
| JPY | 0.51% | 0.24% | 0.16% | 0.41% | -0.10% | -0.14% | 0.42% | |
| CAD | 0.11% | -0.17% | -0.26% | -0.41% | -0.47% | -0.93% | 0.00% | |
| Aud | 0.57% | 0.28% | 0.20% | 0.10% | 0.47% | -0.48% | 0.46% | |
| NZD | 0.61% | 0.76% | 0.67% | 0.14% | 0.93% | 0.48% | 0.94% | |
| CHF | -0.03% | -0.33% | -0.26% | -0.42% | -0.00% | -0.46% | -0.94% |
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).
The Japanese currency had a lower performance than their peers on Monday after Iran threatened to close the Ormuz Strait, which led to a strong increase in the price of oil. Since the Japanese economy meets its oil needs through imports, the highest prices of energy decrease the attractiveness of Japanese yen.
Meanwhile, the libra sterling listed upwards in front of its main peers, except the currencies of Asia-Pacific, due to the optimistic preliminary data of the purchasing managers index (PMI) of the United Kingdom Global S&P (UK) for June published on Monday. The data showed that the compound PMI grew at a faster rate than expected due to good performance both in the activity of the manufacturing sector and in the services sector.
The PMI of Services grew as expected at 51.3, greater than May 50.9. While the manufacturing PMI decreased to about 47.7, but at a slower pace than anticipated.
The GBP/JPY goes back after a rupture of the ascending triangle formation in a daily frame, which leads to wider ticks and a heavy volume upwards. The horizontal resistance of the aforementioned graphic pattern is drawn from the maximum of May 14 around 196.41, while the ascending trend line is placed since the minimum of May 22, 191.90.
The 20 -day exponential (EMA) mobile average ascent around 195.50 suggests that the short -term trend is upward.
The 14 -day relative force (RSI) index breaks above 60.00. A new bullish impulse would arise if the RSI remains above that level.
The torque could extend its upward movement towards the psychological level of 200.00 and the maximum of July 23, 2024 of 203.16 after breaking above the maximum of Monday of 198.20.
On the other hand, a downward movement below the minimum of May 6, 190.33 will expose it to a minimum of March 11, 188.80, followed by the minimum of February 7, 187.00.
GBP/JPY daily graphics
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.
