- GBP/JPY remains on the back for the third day in a row.
- UK’s virus fatalities likely to reach Italy’s levels, more than $8bn (£6.5bn) has been pledged as help during the EU-led summit.
- UK-US will kick-start trade talks, US Chamber of Commerce prefers removing all tariffs.
- British Services PMI can entertain markets, qualitative catalysts can take the lead amid Japan’s off.
Despite staying in a choppy range between 132.67 and 132.88, currently around 132.80, GBP/JPY remains pressured for the fourth so far during Tuesday’s Asian session.
While the recent recovery in the market’s trading sentiment, as portrayed by the S&P 500 Futures, fears that the UK’s coronavirus (COVID-19) death toll will rise seems to have weighed on the quote.
As per the latest data from John Hopkins University, till Sunday, the UK’s death toll nears 28,446, closely behind Italy’s 28,884 deaths. “Given that the U.K. is seen to be a week or two behind Italy in its stage of the outbreak too, the death toll could be much higher,” said the CNBC.
It should also be noted that the fears of confirmation of the downbeat Services PMI for April, versus 12.2 forecasts and 12.3 initial estimations, could act as an extra negative for the pair.
Elsewhere, global policymakers and donors step forward and pledge nearly $8bn (£6.5bn) in an online summit hosted by the European Union (EU) President Ursula von der Leyen.
Furthermore, the US and the UK are set to begin the trade negotiations and can offer tough grounds to the EU to agree over Brexit talks. Recently, the US Chamber of Commerce said the US and UK should work to remove all tariffs and barriers to boost the long-term outlook for both countries.
Other than the trade, virus and Services PMI, the US-China can also direct near-term pair moves and hence worth following. Though, major attention will be given to Thursday’s BOE which has surprisingly been moved ahead of its regular publishing time.
Technical analysis
Unless breaking a 50-day SMA level of 134.80 on a daily closing basis, the pair isn’t expected to challenge April month high surrounding 135.40/45. As a result, the previous monthly low near 131.90 remains on the sellers’ radars ahead of March 18 peak close to 130.35.
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