- GBP/JPY rises to the 200-day SMA hurdle at 136.38.
- UK’s Gove says doors still slightly open for Brexit deal.
- PM Johnson says Britain could have a simple deal based on free trade principles.
The British pound draws bids and pushes GBP/JPY higher on Monday, with Britain’s Brexit minister Michale Gove saying that doors are still ajar or slightly open for a Brexit deal.
The pair is currently trading near the 200-day simple moving average (SMA) at 136.38, representing a 0.19% gain on the day, having picked up a bid at 135.83 during the early Asian trading hours.
Gove said Sunday that the UK is “increasingly well-prepared” for a no-deal Brexit, which could disrupt supply chains across Europe, worsening the coronavirus-induced recession. As such, businesses have urged Britain and the European Union to find a compromise over trade terms.
However, while Gove talked about Britain’s preparedness, he left the doors open for negotiations, stating that talks could happen if the European Union (EU) moves ground in key areas.
British Prime Minister Boris Johnson said Friday that Britain should get ready for a deal based on simple global free trade principles similar to the one Australia has.
Apart from Gove’s positive comments, the pair seems to be getting a push higher from the S&P 500 futures and Asian stocks’ risk-on action.
Asian equities have begun the week on a positive note on renewed expectations for additional US fiscal stimulus and coronavirus vaccines before the end of the year.
Technical levels
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