- GBP/JPY holds onto recovery gains around intraday high.
- US CDC updates mask mandate for fully vaccinated people.
- UK turns cautious over covid passport, unlock amid Indian variant spread, Japan eyes stringent emergency rules.
- Risk catalysts become the key amid a light calendar in Asia.
GBP/JPY reverses the previous day’s losses, recently picking up bids near 153.85, during Friday’s Asian session. In doing so, the quote takes clues from the risk-on mood while paying a little heed to the downbeat coronavirus (COVID-19) updates from the UK and Japan.
A doubling of the Indian strain of covid in a week recently troubled the British policymakers. “Local and regional restrictions to tackle the Indian Covid variant cannot be ruled out,” said the UK government, per BBC during its late Thursday news. In a separate report, the UK Telegraph mentioned Britain scaling back the covid passport plans amid ministers’ questions on the health benefits it will offer.
On the other hand, Japan’s little success in taming the deadly virus spread at home pushes the government to introduce more stringent coronavirus restrictions in 5 more prefectures. Details shared by Kyodo News mentioned the new measures could come into effect from May 16 and will remain active until June 01.
It’s worth mentioning that the Middle East tensions also probe the risk-on mood.
Alternatively, the US Centers for Disease Control and Prevention (CDC) push for no mask-mandate for fully vaccinated people, which in turn helped trading sentiment to extend the previous day’s optimism. The markets turned positive on Thursday after the US Jobless Claims dropped to the pre-pandemic levels, defying the woes portrayed earlier by the US Nonfarm Payrolls (NFP). Also on the positive side were comments from the Federal Reserve (Fed) and the Bank of England (BOE) officials shrugging off reflation woes while also praising the economic recovery moves.
Amid these plays, S&P 500 Futures is up 0.20% after all the three Wall Street benchmarks closed in positive for the first time in a week the previous day. That said, Japan’s Nikkei 225 is up 1.8% by the press time.
Given the lack of major data/events in both Japan and the UK, GBP/JPY traders will keep their eyes on the risk catalysts for fresh impulse.
Technical analysis
Although the 154.00 threshold and the recent high around 154.50 guards short-term GBP/JPY upside, the previous resistance line from April 20 near 153.15 holds the gate for sellers’ entry.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.