The GBP/JPY pair is trading lower near the mid-161.00s as the Japanese Yen remains firmer across the board. This comes despite the incoming Bank of Japan (BoJ) Governor Kazuo Ueda’s defense of the easy money policy. Japan inflation came in mixed but yields retreated from the multi-day top. Japan’s nominee for the new central bank governor, Kazuo Ueda spoke in the lower house of parliament early Friday and stated that the BoJ’s current monetary easing is appropriate.
The Japanese Yen gained across the board even as the Treasury bond yields retreat. The reason could be the market’s bracing for future hawkish moves. On the other hand, the Brexit woes seem to weigh on the British Pound (GBP) and please the GBP/JPY bears. Boris Johnson has refused to back Rishi Sunak’s Brexit deal in a major blow to Downing Street’s hopes of avoiding a eurosceptic Tory rebellion. UK Prime Minister Rishi Sunak earlier faced criticism from the Conservatives to push for Northern Ireland (NI) trade deal with the European Union (EU).
Not only the Brexit woes but the lack of progress in the British government’s talks with the nurse union also exerts downside pressure on the GBP/JPY prices. Amid these plays, the 10-year Treasury bond yields mark a three-day downtrend near 3.87% by the press time, following a run-up to refresh a three-month high. The challenges to the sentiment, mainly emanating from China and Russia, also act as the catalysts in the GBP/JPY pair’s downside move.
Headlines suggesting China’s readiness to supply combat drones to Russia and the US Senators’ push to halt Chinese carriers overflying Russia on US flights seem to renew the market fears. With this, the market sentiment remains dicey and the S&P 500 Futures print mild losses even as Wall Street closed with minor gains. It’s worth mentioning that the UK’s GfK Consumer Confidence Index jumped to the 10-month high by rising seven points to -38, versus forecast of -43.
A light calendar ahead of the US data emphasizes the risk catalysts for clear directions. Not only a U-turn from the 200-DMA, close to 163.35 at the latest, but a downside break of the two-week-old ascending trend line, around 163.25 by the press time, also keeps the GBP/JPY bears hopeful.
The Japanese Yen has been on an uptrend against the British Pound (GBP) in the GBP/JPY pair, with the pair trading lower near the mid-161.00s. This comes despite the incoming Bank of Japan (BoJ) Governor Kazuo Ueda’s defense of the easy money policy. Japan inflation came in mixed but yields retreated from the multi-day top. Japan’s nominee for the new central bank governor, Kazuo Ueda spoke in the lower house of parliament early Friday and stated that the BoJ’s current monetary easing is appropriate.
The Japanese Yen gained across the board even as the Treasury bond yields retreat. The reason could be the market’s bracing for future hawkish moves. On the other hand, the Brexit woes seem to weigh on the British Pound (GBP) and please the GBP/JPY bears. Boris Johnson has refused to back Rishi Sunak’s Brexit deal in a major blow to Downing Street’s hopes of avoiding a eurosceptic Tory rebellion. UK Prime Minister Rishi Sunak earlier faced criticism from the Conservatives to push for Northern Ireland (NI) trade deal with the European Union (EU).
Not only the Brexit woes but the lack of progress in the British government’s talks with the nurse union also exerts downside pressure on the GBP/JPY prices. Amid these plays, the 10-year Treasury bond yields mark a three-day downtrend near 3.87% by the press time, following a run-up to refresh a three-month high. The challenges to the sentiment, mainly emanating from China and Russia, also act as the catalysts in the GBP/JPY pair’s downside move.
Headlines suggesting China’s readiness to supply combat drones to Russia and the US Senators’ push to halt Chinese carriers overflying Russia on US flights seem to renew the market fears. With this, the market sentiment remains dicey and the S&P 500 Futures print mild losses even as Wall Street closed with minor gains. It’s worth mentioning that the UK’s GfK Consumer Confidence Index jumped to the 10-month high by rising seven points to -38, versus forecast of -43.
A light calendar ahead of the US data emphasizes the risk catalysts for clear directions. Not only a U-turn from the 200-DMA, close to 163.35 at the latest, but a downside break of the two-week-old ascending trend line, around 163.25 by the press time, also keeps the GBP/JPY bears hopeful.
The Japanese Yen’s strength against the British Pound (GBP) has been further bolstered by the challenges to the sentiment, mainly emanating from China and Russia, which has acted as the catalysts in the GBP/JPY pair’s downside move. Headlines suggesting China’s readiness to supply combat drones to Russia and the US Senators’ push to halt Chinese carriers overflying Russia on US flights have renewed the market fears.
The market sentiment remains dicey and the S&P 500 Futures print mild losses even as Wall Street closed with minor gains. The UK’s GfK Consumer Confidence Index jumped to the 10-month high by rising seven points to -38, versus forecast of -43. This is in spite of the light calendar ahead of the US data emphasizing the risk catalysts for clear directions.
The 200-DMA, close to 163.35 at the latest, and the two-week-old ascending trend line, around 163.25 by the press time, have kept the GBP/JPY bears hopeful. The Japanese Yen’s strength is expected to continue against the British Pound (GBP). The market sentiment is likely to remain dicey as the risk catalysts from China and Russia continue to weigh on the GBP/JPY pair. The light calendar ahead of the US data will also emphasize the risk catalysts for clear directions.
