Over the last month the Pound to Japanese Yen has continued its negative path and buying JPY is now over 5% more expensive so a £200,000 transfer would now secure you over JPY1.4m less compared to a month ago and over 30% more expensive compared to the beginning of the year. The reason for this fall cannot just be attributed to the negative trend seen for Sterling following the referendum result and the decision to leave the EU but also news from Asia.

Yesterday GBP/JPY actually climbed by nearly 1% meaning we currently sit close to the highest levels seen in the last 10 days. This was following a fall in exports in September even despite a relatively strong Yen. Government data showed that exports fell 6.9% year on year.

Japanese Purchasing Managers Index (PMI) rose to 51.7 which was the fastest expansion for nine months, however this was overlooked in favour of the fall in exports due to the large dependency of the economy on exports of everything from cars to gaming stations.

If you are looking to place a GBP/JPY trade this week as well as watching out for the BoE commentary this evening and the GDP figures on Thursday from the UK, watch out for Foreign Investment released tomorrow evening and a host of data on Thursday.

Foreign investment is expected to show a slight fall due to the relatively strong currency value of the YEN, so expect the currency to get cheaper to buy on this event tomorrow. Thursday’s releases are expected to be more mixed with Unemployment expected to remain steady at 3.1% but housing spending to fall.

Personally I am of a view that GBP/JPY rates will be higher at the start of the week rather than the end. As a result and with all things considered I would urge anyone with a trade to get in contact sooner rather than later.

If you are looking to buy Japanese Yen and would like to know more on how this weeks data could impact your currency requirements, speak to our team today on 01494 725 353.


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