GBP/JPY weaker near 145.50 amid Mueller report, Brexit

Brexit pessimism remains in focus amid Mueller’s report and yield curve development.
50-day SMA continues to become immediate strong support with 145.90 likely nearby resistance.

Anil Panchal FXStreet

GBP/JPY is taking the bids around 145.50 during early Monday. Traders trimmed their support off safe-havens after Robert Mueller’s report of the US President Donald Trump’s collusion with Russia reported no proofs of any of the US or Trump administration officers being guilty. Though, doubts over the UK PM Theresa May’s leadership and inverted yield curve capped the pair’s gains. The pair took a U-turn from 50-day simple moving average (SMA) on Thursday and managed to remain above it since then.

The US special counsel Robert Mueller finally released a long-awaited report on the investigation concerning the US President Donald Trump and/or his team’s conspiracy with Russia to win during Presidential election in 2016. The report pleased Trump administration as it didn’t find any of the US person or trump campaign official knowingly conspired with Russia. The same helped trigger an upbeat week-start for the US Dollar.

However, the inverted spread between the 3 month and 10-year yields gained investor attention as this happened once ahead of the great financial crisis. Adding to pessimism were doubts over the UK PM Theresa May’s future leadership as the BBC reported that the lawmakers at home are preparing a coup for May over her criticism that the members of parliament (MPs) were the reason for Brexit delay.

Japan’s all industry activity index (MoM) for January becomes an immediate catalyst to watch whereas Brexit developments could keep entertaining investors amid no major data scheduled from the UK.

The January month Japanese gauge is likely to reverse prior -0.4% decline with +0.2% expansion.

GBP/JPY Technical Analysis

50-day SMA level of 144.40 acts as nearby important support for the pair, a break of which can drag the quote to 143.70 level comprising 100-day SMA.

On the upside, 145.90 and 146.15 could please short-term buyers ahead of challenging them with 147.00 and 147.50 resistances.

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 trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.