US Dollar to Japanese Yen (USD/JPY) Exchange Rate Shifts Higher; GBP/JPY Also Stronger
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The safe-haven Yen lost ground against several of its most traded currency counterparts, including the Pound and US Dollar, amid rising sentiment and the expectation that influential Japanese businesses would publish respectable earnings reports.
While Mitsubishi, Nomura and Honda are all due to release their earnings figures over the next five days, Nissan Motor Co. has already announced a stronger-than-anticipated first quarter income.
On a quarterly basis Nissan’s profits were up almost 37%. The surge in income was in part due to increased exports and a more favourable exchange rate.
In the opinion of Carlos Ghosn; ‘Nissan continued to make progress in the first three months of the fiscal year as encouraging demand for new products, benefits from recent plant investments, and improving market conditions in North American, China and Europe combined to lift both revenues and profits.’
The US Dollar to Japanese Yen exchange rate was trending in the region of 101.8500 having come down from a high of 101.9000.
The appeal of the US Dollar has been heightened ever since the US published an unexpectedly encouraging Initial Jobless Claims report last week. This week’s major US reports (including growth figures, the FOMC rate decision and Non-Farm Payrolls) could all be responsible for further USD/JPY movement.
The Pound Sterling to Japanese Yen (GBP/JPY) exchange rate was able to trade just off the day’s high of 173.0500 in spite of underlying Pound weakness.
The British asset was struggling against almost all of its most traded currency counterparts as traders trimmed their bullish Sterling bets.
A steep increase in profit warnings among UK companies also weighed on the Pound.
US Dollar to Japanese Yen Exchange Rate Forecast
If today’s US Markit Services PMI report shows that the gauge remained firmly in expansion territory in July, we forecast that the US Dollar to Japanese Yen (USD/JPY) exchange rate could extend gains.
The US Pending Home Sales figures and Dallas Fed Manufacturing Activity Index will also be of interest.
Overnight, Yen movement could be caused by Japan’s Household Spending, Jobless Rate, Retail Trade and Small Business Confidence Reports.
Other Japanese data to be aware of this week includes the nation’s Industrial Production figures, Vehicle Production data, Housing Starts and Markit Manufacturing PMI.
Bank of Japan Governor Haruhiko Kuroda is also scheduled to speak on Friday.
The US Dollar to Japanese Yen (USD/JPY) exchange rate is currently trading in the region of 101.8700 and the Pound Sterling to Japanese Yen (GBP/JPY) exchange rate is currently trading in the region of 172.9400