GBP/JPY struggles around 147.60 amid Brexit headlines, UK employment data in spotlight

Mixed Brexit headlines, FOMC expectations and global growth concerns play their role.
UK employment figure can provide fresh impulse with Brexit progress being in the background.

Anil Panchal FXStreet

GBP/JPY is mildly bid near 147.60 during early Tuesday. The pair has been struggling with the overall risk-on sentiment and Brexit developments. Next up in the traders’ radar will be British jobs data and progress over how the UK PM Theresa May prepares to confront the EU summit.

While expectations of monetary policy easing from the Fed and rejection of no-deal Brexit by the UK parliament seems in favor of the market’s recent risk-on mood, mixed set of headlines concerning further proceedings at the Britain and doubts over global growth challenge the pair’s an upside.

Latest among the Brexit headlines say the EU is ready for three-month extension to the March 29 deadline, PM May is expected to aim for nine to twelve month of a stretch, Tories are set for a strike if PM May doesn’t resign. Alternatively, recent data from the US, Australia and New Zealand haven’t been in market favor and continues to signal downside risk.

Additionally, PM May’s third Brexit proposal won’t be up for voting on Tuesday as the UK lawmakers oppose any deals similar to the previous ones that were already rejected. Hence, PM May is now forced to attend Thursday’s EU summit with empty hand requesting for a deadline extension.

The UK jobs report is set to release January month average earnings and unemployment rate details together with February month claimant count data at 09:30 GMT. No change is expected in the unemployment rate and average earnings excluding bonus numbers of 4.0% and 3.4%. However, headline average earnings could soften to 3.2% from 3.4% whereas claimant count change might also decline to 3.7K from 14.2K.

GBP/JPY Technical Analysis

Immediate ascending support-line stretched since March 08 at 147.00 may challenge short-term sellers, a break of which can print 146.50 and 145.40 on the chart whereas 200-day simple moving average (SMA) and two-month-old ascending trend-line, around 144.70/65, could limit further downside.

148.40 seem adjacent resistance ahead of the pair’s rise to 149.00 trend-line joining highs since September 2018.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold consolidates below $5,150 as traders await Trump's State of the Union address

Gold steadies below the $5,150 level following the previous day's pullback from the monthly peak as traders opt to wait on the sidelines ahead of Trump's State of the Union address. In the meantime, trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion. However, the Fed's less hawkish outlook underpins the US Dollar, which, along with a positive risk tone, caps the upside for the non-yielding yellow metal.

Coinbase launches stocks and ETF trading amid ongoing plans for all-in-one platform

Coinbase has launched stocks and ETF trading for US customers on its platform, according to an X post on Tuesday. The service offers commission-free trading available 24 hours a day, five days a week, for eligible securities. Traders deposit US dollars or USDC to fund positions and access fractional shares as low as $1.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.