GBP/JPY: Cable edged up on hopes of soft Brexit, offsets hawkish stance by Japanese FM
- GBP boosted by hopes of a softr Brexit.
- EU may soften its stance on Brexit terms.
- Japanese Finance Minister sounded quite hawkish about the Yen's strength.
GBP/JPY is now trading around 149.82, in the New York Session, edged up by almost 0.05% on reports of EU’s softening Brexit stance, and despite the hawkish stance by Japanese Finance minister about the strength of Yen and speculation of a change in BOJ´s policy guidance and confusions about Kuroda’s reappointment.
UK PM Theresa May is reportedly facing a crisis related to the Brexit border deal, after discussions with Northern Ireland, were said to have collapsed.
Separately there was a report indicating that the EU will demand the right to raid financial services firms in Britain after Brexit and hand its regulators sweeping new powers, as Brussels moves to shackle the City of London with red tape after the UK leaves the bloc.
Finally, in some good news, there is an unconfirmed report that EU diplomats have removed a so-called "punishment clause" from a draft text of the arrangement for the Brexit transition period. Another report also suggests that the European Union is looking to ease Brexit transition conditions.
British Prime Minister May will meet German Chancellor Merkel in Berlin on Friday as Britain and its European Union partners head into crunch negotiations about Brexit.
Earlier, Yen got some strength today on hawkish comments by Japanese Finance Minister Aso that the Yen's strength "wasn't abrupt enough" to require intervention.
JPY got boosted today by an upbeat JP economic data such as capacity utilization and IIP for December after muted GDP data released yesterday. As par latest reports, Japan may list nominees for the post of BOJ Gov & Dy Gov to the Parliament tomorrow and Kuroda may be reappointed along with two new deputies.
Technical View:
Technically, for GBP/JPY, the area of 148.75-147.95 is now a vital support followed by the 146.95 price zone.
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