March 30, 2021 – Written by John Cameron
GBP/JPY Exchange Rate Rangebound as Japanese Markets Await Latest Industrial Production Data
The Pound Japanese Yen (GBP/JPY) exchange rate held steady today after Japan backpedalled on letting people chose which Covid-19 vaccine to take. The pairing is currently fluctuating around ¥151.38.
Japan is lagging behind many large economies in rolling out Covid-19 vaccines, with the nation struggling to procure vaccines from foreign manufactures.
Jiji Kyodo, an analyst for Bloomberg, commented on the situation:
‘Japan is still limiting COVID-19 vaccines to health care workers, with more than 780,000 first vaccine doses administered in Japan as of Monday — a number that accounts for less than 1% of its more than 125 million residents.
‘The country’s vaccination plan has been scrutinized for its slow pace compared to other developed countries and its Asian neighbors, especially as Tokyo prepares to host the Olympics in July with no timeline on when most people will be inoculated.’
In Japanese economic data, this evening will see the publication of the Industrial Production figure for February.
Any improvement in the outlook for Japan’s economy would bolster the JPY/GBP exchange rate.
Pound (GBP) Steady as UK Covid-19 Death Count Passes 150,000
The Pound Japanese Yen exchange rate held steady today after it was announced that the UK Covid-19 death count had passed 150,000, according to the ONS.
Prime Minister Boris Johnson has also urged to public to remain cautious despite the recent easing of lockdown restrictions, which now means that groups of up to 6 can meet outdoors.
Mr Johnson warned about new variants of Covid-19 which could jeopardise the effectiveness of vaccinations.
Mr Johnson said:
‘What we don’t know is exactly how strong our fortifications now are, how robust our defences are against anothe wave.’
He also added:
‘I’m hopeful; I don’t see anything in the data right now that would cause us to deviate from the roadmap.’
GBP/JPY Exchange Rate Outlook: UK GDP Data in Focus
Japanese Yen (JPY) investors will be awaiting tomorrow’s release of Japan’s Tankan Large Manufacturing Index for the first quarter.
Any improvement would boost the JPY/GBP exchange rate.
Tomorrow will also see the release of Japan’s Construction Orders for February.
Again, if this points to an improvement in Japan’s economy, then we could see the JPY rise.
Pound (GBP) investors will be monitoring tomorrow’s release of the UK GDP data for the final quarter of 2020.
The Pound Japanese Yen (GBP/JPY) exchange rate could head higher this week, however, if the outlook for the UK economy
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TAGS: Japanese Yen Forecasts Pound Yen Forecasts