GBP/JPY fails to hold on to recovery gains amid recent risk-off, Brexit news
|- UK politicians keep plotting to topple PM Johnson, delay Brexit.
- US-China trade tussle, North Korean missile tests renew risk-off.
- Lack of data highlights trade/political news for fresh impulse.
- Having benefited from upbeat UK data and a mild risk recovery, the GBP/JPY pair again declines to 128.30 on early Friday.
Thursday’s upbeat UK Retail Sales growth and comments from the US that China might not retaliate upcoming tariffs triggered the pair’s pullback on the previous day.
However, early-day statements from China’s Global Times poured cold water on the expectations. Also weighing the risk sentiment is North Korea’s another missile test round. In a reaction, the US 10-year treasury yields keep it low around 1.527% by the press time.
On the other hand, British lawmakers are plotting to topple the UK Prime Minister (PM) Boris Johnson with a no-confidence vote as soon as early September and also delay the Brexit. Though, the US President Donald Trump’s comment to likely have strong trading ties with the UK PM Johnson and company keep the Pound in check.
With the little or no major data up for publishing during the rest of the day, investors can keep an eye over the trade/political headlines for fresh direction. It should also be noted that British Chancellor of Exchequer Sajid Javid will travel to Berlin and meet Germany’s finance minister Olaf Scholz.
Technical Analysis
Unless breaking early-month low near 130.00, prices are less likely to aim for 131.70 and July 31 top at 133.00. In doing so, 127.40 and 126.50 can please short-term sellers.
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