GBP/JPY: Brexit, full-fledged bear dominating below 153.00 on COVID-19 chatter
GBP/JPY licks the cut at the 152.70 area after hitting a week-long high before hitting a two-week low of 152.47 ahead of the London opening on Friday. The Cross saw a double attack as it served food to bears amid fears of coronavirus and Brexit-related concerns. 4,444 French fishermen prepare to shut down Channel Tunnels and major ports on Friday to celebrate their disappointment over the UK’s fishing license regulations.
The British government has already urged politicians not to use illegal means, but this is unlikely to stop France’s outrage.
On the positive side, Maroš Šefchovic’s visit to London, an EU exit officer, is a British diplomat if both parties agree on a border protocol with Northern Ireland (NI), which has recently shown positive progress. It is worth noting that the previous day’s refusal of Bank of England (BOE) Governor Andrew Bailey’s inflation concerns reduces the likelihood of a rate hike and also affect GBP / JPY prices.
Or, Japan’s recent announcement and Moody’s rating outlook are adding to more robust inflation data to further drive the yen’s appreciation.
“If a new coronavirus variant is identified, we will revisit border control as needed,” said Hirokazu Matsuno, Chief Cabinet Secretary of Japan, according to Reuters. As for data, Japan’s consumer price index (CPI) rose from 0.1% year-on-year to 0.5% in November, and fresh food CPI fell from 0.4% in market forecasts to 0.3%. 0, 1% faster. In addition, CPI ex Food and Energy were 0.3% of expectations on an annual basis.
Elsewhere, concerns about the Fed’s rate hikes at the wrong time are squeezing market sentiment and supporting the US dollar’s demand for safe haven. However, the Covid19 issue has spread outside Europe’s first horror zone due to concerns about a variant of the official name B.1.1.529, which is related to South Africa and is unaffected by the vaccine. For this reason, the World Health Organization (WHO) and UKHSA held a special session on Friday.
Sentiment on 10-year Treasuries yields on US Treasuries fell 8 basis points (bps) to 1.565%, extending Wednesday’s recession from its monthly highs and S & P 500 futures falling 1.0% at the latest.
In further courses, risk catalysts may keep the driver’s seat on a bright calendar. On the positive side, EU Brexit Secretary Maros Sefchovic’s visit to London could please British diplomats if the parties agree to the Northern Ireland (NI) Border Protocol, which has recently made positive progress. At inflation, it is worth noting that Bank of England (BOE) Governor Andrew Bailey fears that the likelihood of a rate hike has diminished as well as pressure on GBP/JPY prices.
Or, Japan’s latest unlocking and credit rating agency Moody’s forecasts, combined with strong inflation data, should help the yen rise further. Japan’s Chief Cabinet Secretary Hirokazu Matsuno told Reuters in an interview with Reuters: “If a new strain of the coronavirus is confirmed, we will review border controls if necessary.” Moody’s, a global credit rating agency, said in a recent credit rating update, “Japan’s stable outlook reflects a gloomy view that Japan’s fundamental economic and institutional capabilities will support its recovery.” According to data, Tokyo’s consumer price index (CPI) data for November rose to 0.5% on an annualized basis from 0.1% in the previous year, while the consumer price index excluding fresh food fell to 0.3% from the market consensus of 0.4%. as 0.1%. Prior. In addition, the CPI, excluding food and energy, increased by 0.3% annually, in line with expectations.
Elsewhere, concerns about a rate hike by the Fed at the wrong time are affecting market sentiment and supporting demand for the US dollar as a safe haven. However, concerns about covid19 have spread beyond Europe’s original feared areas due to concerns about the officially named B.1.1.529 strain, which is related to South Africa and is immune to the vaccine. For the same reason, the World Health Organization (WHO) and UKHSA convened a special meeting on Friday. The 10-year U.S. Treasury yield fell 8 basis points to 1.565%, continuing its decline Wednesday from its one-month high, while S&P 500 futures fell 1.0% at the latest.