GBP/JPY Exchange rate
Editors’ Picks
AUD/USD slides toward 0.6200 after softer Australian inflation data
AUD/USD is flriting with weekly lows, heading toward 0.6200 in Wednesday's Asian trading. Softer-than-expected Australian inflation data reaffirm February RBA rate cut bets, smashing the Aussie. Further, China's economic woes and US-Sino trade war fears weigh further on the pair ahead of the Fed verdict.
USD/JPY trades better bid above 155.50, awaits Fed's decision
USD/JPY picks up fresh bids above 155.50 early Wednesday as traders look to the key FOMC decision before placing fresh directional bets. The divergent Fed-BoJ policy expectations might continue to act as a tailwind for the currency pair, though trade war fears could limit any downside.
Gold price consolidates amid mixed cues; focus remains on Fed
Gold price struggles to capitalize on the previous positive move as investors await the outcome of a two-day FOMC meeting to determine the next leg of a directional move. Meanwhile, Fed rate cut bets and sliding US bond yields might continue to support the non-yielding bullion.
122,000 new investors buying LTC amid Ripple’s latest victory
Litecoin price consolidated above the $110 mark on Tuesday buoyed by positive swings in US regulatory pendulum towards altcoins ETF. On-chain data shows LTC continues to attract new buyers, despite recent volatile market movements.
Australia CPI expected to ease further in December, nearing RBA’s target
Australia will release fresh inflation-related data on Wednesday, and financial markets anticipate price pressures eased further at the end of 2024, paving the way for a Reserve Bank of Australia (RBA) interest rate cut when it meets in February.
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Signatures
GBP/JPY
The GBP/JPY pair tells the trader how many Japanese Yen (the quote currency) are needed to purchase one British Pound (the base currency). It is known to be a “carry currency cross”, that is a cross which is a vehicle for carry trading (one of today's most popular trading strategies). A carry trade happens when a person sells or borrows an asset with a low-interest rate in order to purchase another asset with a higher interest rate, looking to profit from the underlying interest rate difference. This strategy is heavily used in the foreign exchange market (forex).
HISTORIC HIGHS AND LOWS FOR GBP/JPY
- All-time records: Max: 1014.000 on 01/01/1963 - Min: 116.853 on 19/09/2011
- Last 5 years: Max: 195.843 on 18/06/2015 - Min: 124.78 on 26/09/2016
* Data as of February 2023
ASSETS THAT INFLUENCE GBP/JPY THE MOST
The GBP/JPY pair can also be impacted by:
- Currencies: USD and EUR. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD and EUR/JPY
- Commodities: Oil.
- Bonds: Gilt (debt securities issued by the Bank of England), GJGB10 (Japan Generic Govt 10Y Yield) and T-Note (Treasury Note, a marketable U.S. government debt security).
- Indices: FTSE 100 (share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), Nikkei 225 (stock market index for the Tokyo Stock Exchange), Dow Jones (DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE GBP/JPY
The organizations and people that affect the most the moves of the GBP/JPY pair are:
- Bank of England (BoE), known to be one of the most effective central banks in the world. It acts as the government's bank and the lender of last resort. It issues currency and, most importantly, it oversees monetary policy (including interest rates). Andrew Bailey became the new Governor of the Bank of England on March 16th, 2020. Her Majesty the Queen has approved the appointment. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.
- Bank of Japan (BoJ) that issues statements and decides on the interest rates of the country. Its Governor is currently Kazuo Ueda. The BoJ has been applying very low interest rates for many years and even introduced a negative interest rate in January 2016, in an attempt lift consumer prices, which have been sliding for most of the past 20 years. Falling consumer prices is a concern for the country since they hurt corporate revenues and tend to stop spendings. The Japanese Consumer Price Index (CPI) is a key indicator closely monitored by traders of all JPY-related currency crosses.
- UK Government and its Prime Minister, Rishi Sunak who took office in October 2022, a day after becoming leader of the Conservative Party.
- Japanese Government and its Prime Minister Shigeru Ishiba, who replaced Fumio Kishida in October 2024..
- UK GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the GBP, while a low reading is negative.