|Member Sentiment Bearish|
Live and Historical GBP/JPY Rates
This chart shows the value of the British pound (GBP) against the Japanese yen (JPY) - that is how many JPY can purchase one pound. Since they are often involved in currency trades, both GBP and JPY are major currencies. They do not form a major or a commodities pair, however. The pair is nicknamed "Geppie."
The British Pound
The British pound is controlled by the Bank of England, and has been a floating currency since 1971. As one of the oldest currencies still currently traded, GBP is also one of the highest valued currencies. It is a favorite among international currency traders, ranking fourth behind USD, EUR, and JPY. With the stability and strength of GBP, it is clear why the United Kingdom remains resistant to joining other members of the European Union in changing their national currency to the euro. Perhaps if inflation surges become more common, such as at the beginning of 2008, the UK will be more inclined to reconsider the euro.
The Japanese Yen
Japan's yen is just ahead of GBP in popularity on the international trade market at number three. It has been classified as a floating currency since 1973. It is also a popular reserve currency. Why is this? Japan has the second largest economy in the world. Major exports include silver, magnesium, and gold. In addition, the Bank of Japan has worked to keep the interest rate on JPY low since 1990. The result has been that governments and businesses heavily used JPY as a carry currency. Japan is dependent on other countries to supply many of the essentials for modern industry including bauxite, iron ore and copper.
It is shocking to many traders that GBP/JPY are not a major pair, since both currencies are such significant players. But the two countries do not carry on significant trade between each other, and the primary volume for currency trading on the pair is through their common trading partner-the US. Volume was high on JPY when it was one of the few currencies with rock-bottom interest rates, but many countries have now adjusted their rates downward as well. Depending on the stability of GBP, this pair can still be useful for carries.
October 21, 2013 at 9:23 AM • Comment
Flagged GBPUSD surge through 1.6120 aims through 1.6255 for 1.6382 Despite a cautious tone on an approach to the 1.6255 Sept peak, the Thursday surge higher signalled a constructive bias within a still range environment, but with heightened risk...Read More
October 18, 2013 at 12:24 PM • Comment
Key Fundamental Forex Events for the Week of October 14th through October 18th The following table lists the key economic data and other events that came out during the week of October 14ththrough October 18th, with release times displayed...Read More
October 14, 2013 at 10:36 AM • Comment
Key Fundamental Forex Events and Forecasts for the Coming Week The following table lists the key economic data and other events that are due out during the week of October 14th–October 18th, with release times displayed for the GMT time...Read More
October 11, 2013 at 2:06 PM • Comment
Key Fundamental Forex Events for the Week of October 7th through October 11th The following table lists the key economic data and other events that came out during the week of October 7th through October 11th, with release times...Read More
October 07, 2013 at 9:44 AM • Comment
Key Fundamental Forex Events and Forecasts for the Coming Week The following table lists the key economic data and other events that are due out during the week of October 7th–October 11th, with release times displayed for the GMT time...Read More