Market news
12.09.2022, 06:22

GBP/JPY renews 11-week top below 167.00 amid firmer yields, mixed UK data

  • GBP/JPY takes the bids to refresh multi-day high despite mixed UK statistics.
  • UK GDP, Manufacturing/Industrial Production numbers disappoint but trade balance improved in July.
  • Treasury yields regain upside momentum as central bankers keep hawkish bias intact.
  • Chatters over BOJ, covid relief package challenge upside momentum.

GBP/JPY marches towards 167.00, up 0.90% around 166.70, as mixed UK economics join firmer Treasury yields to please bulls during the initial hours of London open on Monday. The upside momentum also takes clues from the technical signals as the quote breaks the short-term key hurdle for the bulls.

That said, the UK’s Gross Domestic Product (GDP) for July eased to 0.2% versus 0.5% market forecasts and -0.6% prior. Further, the figures for Industrial Production and Manufacturing Productions also marked a downbeat outcome on an MoM basis, despite improving from priors on YoY. It should be noted, however, that trade balance data have been firmer and seemed to have helped the GBP/JPY bulls of late.

Also read: UK Manufacturing Production rises 0.1% MoM in July vs. 0.6% expected

Elsewhere, US 10-year Treasury yields add two basis points (bps) to 1.34% while reversing the previous day’s downbeat performance amid Monday’s sluggish session, due to China’s holiday and a light calendar. Even so, recently hawkish comments from the policymakers of the European Central Bank (ECB) and the US Federal Reserve (Fed) seem to keep the fears of the recession on the table. On the same line could be the hawkish hopes from the Bank of England (BOE), especially after Liz Truss won the UK PM candidacy.

On the contrary, economic fears surrounding Britain, mainly due to the expectations of further activity halt on Queen’s death, join the chatters over the Bank of Japan’s (BOJ) market intervention to defend the yen and likely rolling back of the covid stimulus also probe the bulls.

It’s worth mentioning that the absence of China and a light calendar elsewhere might restrict the GBP/JPY moves looking forward.

Technical analysis

A sustained upside break of a 2.5-month-long horizontal resistance area, now support around 166.30, directs the GBP/JPY towards the yearly peak surrounding 168.50. During the anticipated run-up, the tops marked in late June and April, respectively around 167.85 and 168.40, could act as buffers.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location