On Tuesday, June 8, the Pound-Japanese yen (GBP/JPY) exchange rate eased to ¥154.88. This comes amidst the 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 would likely shrink less than what was previously predicted in the first quarter. As a result, JPY traders turned out 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. Experts are predicting that these figures will jump higher as the country’s economy resumes.
However, the easing of the lockdown on June 21 might be delayed due to the spiking coronavirus cases. As a result, GBP traders became more cautious about 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.
Experts forecasted that the GBP/JPY exchange rate would jump higher if Japan’s economic outlook continued to improve.
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 fluctuated 0.21% to 0.7215.
In addition, the EUR/USD also fell by 0.1% to 1.2177. However, it is still over its three-week low of 1.2104 from last Friday.
Lastly, the US dollar index, which trails the greenback in rivalry with the other six currencies, hovered at 0.13% to 90.062. The index was not far from a four-and-a-half-month low in May at 89.533.
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