FXStreet put sterling near ¥212 against the yen Thursday as the UK released new growth figures and a Japanese official warned that recent currency moves had been too rapid.
The outlet reported GBP/JPY at about ¥212 per pound at 3:06 a.m. ET (08:06 UTC), after a small intraday dip. FXStreet said the pair had moved within narrow limits during roughly the prior week.
The Office for National Statistics (ONS) said its first estimate showed real gross domestic product (GDP) rose 0.7% from the second quarter in July to September, following 0.5% growth in April to June. GDP was 1.9% higher than a year earlier. The ONS said the preliminary quarterly estimate may be revised. Separate monthly figures showed GDP increased 0.2% in September; production output rose 0.3%, including a 0.7% increase in manufacturing.
Atsushi Mimura, Japan’s vice minister of finance for international affairs, warned that recent currency movements were too rapid, Reuters and Jiji Press reported. The outlets also said he referred to the summer’s intervention. Japan’s Ministry of Finance recorded ¥15,399.3 billion in dollar sales and yen purchases across operations on July 30, July 31 and Aug. 3.
The Bank of England raised Bank Rate to 4.00% on Nov. 5. The Bank of Japan said Oct. 30 that it would keep its uncollateralized overnight call rate around 1.25%. The difference is 275 basis points, calculated from those official rates. FXStreet said the spread supports yen-funded carry trades and that intervention concerns could limit further yen weakness. The rate gap also featured in earlier EconoTimes coverage of sterling-yen trading.
The ONS lists Dec. 11 for its next monthly GDP release. The Bank of England’s next rate decision is scheduled for Dec. 17, and the Bank of Japan’s next policy meeting is set for Dec. 17-18.
