- USD/JPY takes the rounds to the recently registered top, close to the late-May 2019 high.
- Upbeat sentiment surrounding the US trade relations with the rest of the world, optimism concerning the UK politics keeps the risk tone lighter.
- Eyes on Japanese Retail Trade, news for fresh impulse.
Given the recently positive trade/political news favoring market sentiment, USD/JPY stays around 109.50 during the initial Asian session on Thursday.
In addition to the latest YouGov MRP poll, concerning the United Kingdom’s (UK) December month election, news of a trilateral trade meeting between the diplomats of the United States (US), Canada and Mexico keeps the risk-tone positive.
The YouGov matched expectations of predicting a huge lead of the UK’s ruling Conservative Party over the opposition Labour Party.
The quote surged to the highest since late-May on Wednesday, to 109.61, as calls of the phase-one trade deal between the United States (US) and China gained support from The Guardian’s forecast that the YouGov’s MRP Poll will favor the Tories in December election polls. Also supporting the pair’s run-up were the strong data releases from the US.
The Wall Street Journal (WSJ) relied on sources while saying that the US and China are near to the phase-one deal with text ready. The JP Morgan’s prediction of a global economic rebound and Goldman Sachs calls that the US-China are pushing to finalize the deal added to the sentiment the previous day.
On the data front, the US Gross Domestic Product (GDP) and Durable Goods Orders took to opportunity to dim the negative impacts of Personal Consumer Expenditure (PCE) and the Core PCE data.
Moving on, Japan’s October month Retail Trade and Large Retailers’ Sales will be the key to watch. The forecast suggests the headline Retail Trade to drop to -4.4% from revised 9.2% prior whereas Large Retailers’ Sales could soften to 1.2% from 10% earlier. It’s worth mentioning that the Thanksgiving Day holiday in the US will limit market’s reaction but trade/political headlines will keep entertaining traders.
Technical Analysis
May-end high surrounding 110.00 is on the bull’s radar for now while pair’s dip below August high close to 109.30 could trigger a fresh pullback.
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