- Boris Johnson says that he is not aiming for a no-deal Brexit outcome.
- The British Pound gets a minor lift following Johnson's positive remarks.
- The fact that the EU is not ready to renegotiate likely to cap further gains.
Buying interest around the British Pound picked up the pace in the last hour, lifting the GBP/JPY cross back above the 138.00 handle and back closer to near two-week tops.
After an initial dip to an intraday low level of 137.79, the cross regained traction and turned higher for the second consecutive session in reaction to positive comments by Boris Johnson - a favourite candidate to be the next UK PM.
Johnson reiterated that the government must deliver on the Brexit vote and the UK must leave the EU on 31 October. He further added that he was not aiming for a no-deal Brexit outcome, which provided a goodish lift to the British Pound.
However, the fact that the European Commission is not willing to renegotiate a deal even with a new UK PM held investors from placing any aggressive bullish bets and turned out to be one of the key factors capping any follow-through up-move.
Adding to this, the prevailing risk-off mood, as depicted by a negative trading sentiment around equity markets, underpin the Japanese Yen’s relative safe-haven demand and further collaborate towards capping intraday gains.
Hence, it would be prudent to wait for a strong follow-through buying before positioning for any further appreciating move, rather an extension of the pair’s recent recovery move from multi-month lows set earlier in June.
Technical levels to watch
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.