On Tuesday, June 8, the Pound-Japanese yen (GBP/JPY) exchange rate eased at ¥154.88. This comes amidst recently released Japan’s rising economic index for April.
The Japanese currency gained from the ruling index figure which gauges the country’s economic activity.
Due to this, the figure jumped to a seven-year high for April this year.
Last week, analysts forecasted that the Japanese economy will likely shrink less than what was previously predicted in the first quarter.
As a result, JPY traders turned to be more optimistic about the outlook of the world’s third-largest economy.
The pound failed to jump over the robust Japanese yen despite the UK’s consumer confidence that hit a five-year high last May.
According to an analyst’s recorded data, the kingdom’s fresh figure sharply spiked to its highest level since April 2016.
Analysts are predicting that these figures will jump higher as the country’s economy resumes.
However, the easing of lockdown on June 21 might be delayed due to the spiking coronavirus cases.
As a result, GBP traders became more cautious on the outlook of the nation’s economy.
Pound investors await tomorrow’s release of the latest UK retail sales figures for May.
Any enhancement in the data of the kingdom’s retail sectors in the preceding months will create a positive impact on its currency.
Analysts predict that the exchange rate of GBP/JPY will continue to shrink if the country’s pandemic curbs won’t ease according to plan.
Meanwhile, JPY traders are still digesting the recently released Japanese gross domestic product (GDP) for the first quarter.
Analysts forecasted that the GBP/JPY exchange rate will jump higher if Japan’s economic outlook continues to improve.
Currency Exchange Rate
As an update on the exchange rate of other currencies, the GBP/USD pair plummeted 0.14% to 1.4158 while USD/CNY also fell by 0.05% to 6.3929.
Conversely, USD/JPY rose 0.16% to 109.41 as Japan’s GDP was released earlier in the day.
It declined 1.00% quarter-on-quarter and 3.90% year-on-year for the first quarter of 2021.
Meanwhile, AUD/USD flopped 0.14% to 0.7742 while NZD/USD also fluctuated 0.21% to 0.7215.
In addition, the EUR/USD also fell by 0.1% at 1.2177, however, it is still over its three-week low of 1.2104 from last Friday.
Lastly, the US dollar index that trails the greenback in rivalry to the other six currencies hovered 0.13% to 90.062.
The index was not far from a four-and-a-half-month low in May at 89.533.