- GBP/JPY clings to 129.30 amid a lack of market reaction to latest headlines.
- Germany opens the door for Irish backstop alteration before France shuns chances of renegotiation.
- Risk-on remains in play despite latest geopolitical tension concerning Middle East, North Korea.
With the Brexit uncertainty keep grabbing the headlines, coupled with trade positive news from the US and geopolitical tension concerning the Middle East and North Korea, GBP/JPY trades near 129.30 during the Asian session on Thursday.
While the US President Donald Trump’s trade-positive tweets have helped the risk sentiment to remain firm, North Korea’s worrisome statements for the US military moves and the US Defence Secretary’s comments for the hermit kingdom as well as Iran keep exerting downside pressure on the pair.
In case of the Brexit, the UK Prime Minister (PM) might be happy after his visit to Germany as the EU’s largest economy said the calls to Irish backstop alternation can be accepted if backed by good proposal within 30 days. However, French authorities stand ready to challenge the mood as Reuters said that the French President turned down the request for renegotiation before meeting the UK PM.
On the economic calendar, Japan’s Nikkei Manufacturing PMI for August slipped below 49.8 forecasts to 49.5.
Risk sentiment carries previous strength with the US 10-year Treasury yield marking 1.580% by the press time.
While there prevails no major data scheduled for publishing, investors will keep an eye over British PM’s France visit and opening of the Jackson Hole Symposium for fresh impulse.
Technical Analysis
A 10-day simple moving average (DMA) around 128.50 offers immediate support ahead of dragging the quote to August 12 high near 127.50. On the contrary, 129.65, 21-DMA level of 129.90 and August 02 high of 130.45 can keep the near-term upside limited.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.