GBP/JPY: Mildly bid around 136.00 amid UK politics, risk-on sentiment


  • Expectations surrounding easy monetary policy dominated over the US-China trade risk catalysts.
  • Equities, bond yields manage to lure buyers while safe-havens weakened.
  • Japan’s industrial production and the UK political plays will be followed for fresh impulse.

Although improving risk sentiment pulled the GBP/JPY pair off from 1-week low, political uncertainty at the UK exert downside pressure on the quote that trades below 136.00 amid Friday morning in Asia.

Be it the Bank of England (BOE) Governor or the US Federal Reserve policymakers, signals of easy monetary policy were well received by the global investors. Flight to equities remains intact and the US 10-year treasury yield, the global risk barometer, surges to 1-month high as it takes the rounds 2.132%.

Anti-Semitism accusations on some of the top members of the opposition Labour party, coupled with criticism on Boris Johnson’s failure to support the now ex-UK ambassador to the US, grabbed market attention. Adding to the pessimism was the European Commission Chief nominee who closed the door for renegotiating the Brexit deal.

It should also be noted that the US President Donald Trump’s tweets raising additional blocks to expectation of the trade deal with China couldn’t derail the investor sentiment.

While May month Industrial Production details from Japan acts as an immediate catalyst to watch, global risk events and UK political plays can keep playing background music for the traders. Speech from the BOE’s Gertjan Vlieghe will also have its impact on prices.

The Industrial Production reading may is expected to remain unchanged at -1.8% (YoY) and +2.3% (MoM) but the Capacity Utilization may slump to +0.2% from +1.6% earlier.

Technical Analysis

Late-September 2016 high around 132.50 and the year 2019 low at 131.79 can keep flashing on bears’ radar unless prices rally beyond monthly top near 137.80, which in turn can please buyers with 138.33 and 140.00 round-figure.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •