GBP/JPY: Guppy under pressure ahead of May’s speech as Japan’s inflation ticks higher

The UK Prime Minister Theresa May to deliver Post-Brexit vision speech.
The Bank of Japan Governor Kuroda said easy monetary policy won’t be revisited in the fiscal year 2018.

FXStreet Team FXStreet

The GBP/JPY is trading down 0.4% at around 145.70 on Brexit-related uncertainties and the Japanese Yen surging as the inflation in Japan ticks up.

Set of inflation numbers from Japan saw Tokyo core CPI excluding fresh food rising 0.9% over the year in February while overhead inflation rose 1.4% in Ku area of Tokyo. At the same time, Japanese unemployment unexpectedly fell to 2.4% in January.

Mr. Kuroda, the Bank of Japan Governor, crossed the wires overnight saying that the Bank of Japan will not be considering policy exit during the fiscal year 2018. He went further confirming the BoJ will continue to expand monetary base until inflation stabilizes.

The UK Prime Minister Theresa May will be delivering her vision for a post-Brexit relationship later on Friday. The Bank of England governor Mark Carney is also scheduled to speak at 10.00 GMT on the topic of cryptocurrencies.

The Pound is under pressure with Brexit uncertainties and the negotiations on the divorce treaty.

The UK construction PMI for February is scheduled on Friday at 09.30 GMT, it is expected to increase to 50.5 versus 50.2 points in January.

Technically the GBP/JPY has broken below it 200 simple moving average, which is a bearish signal. The next support is seen at 144.30 which is the 38.2% Fibonacci retracement from the November 2017-February 2018 bull run. Further down 140.50 should provide some support as it is the 50% Fibonacci retracement from the November 2017-February 2018 bull run. To the upside, the 148.00 figure along with the 200-period simple moving average is the next key resistance. Further up, 150.50 should provide some resistance with the 100-period simple moving average.

GBP/JPY daily chart

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.