- GBP/JPY stays positive as Japan’s Q2 GDP data matched downbeat forecasts.
- The Brexit drama keeps occupying the front-seat as the UK PM refrains from accepting the defeat.
- UK data and political headlines will be followed for fresh impulse.
GBP/JPY remains firm after Japan’s second quarter (Q2) Gross Domestic Product (GDP) data as it takes bids to 131.37 amid initial Asian morning on Monday.
Japan’s Q2 GDP matched market consensus of 0.3% versus 0.4% preliminary reading and 0.1% prior on a QoQ basis while meeting 0.4% prior on the YoY format. Further, the GDP Annualized also met expectations of 1.3% growth against 1.4% earlier readout.
Despite witnessing multiple defeats at the House of Commons, the UK Telegraph reports that the United Kingdom (UK) Prime Minister (PM) Boris Johnson is seeking legal plans to block the Brexit extension. However, recent resignation from top Tories, including Jo Johnson and Amber Rudd, pushes him towards Dublin, as per The Guardian.
The British policymakers are planning to call emergency debate to challenge the PM Johnson’s anticipated efforts to block the Brexit extension while also turning previous motions concerning no-deal Brexit and no snap elections into law.
It should also be noted that France is expected to use its veto power to stop the EU from allowing any more Brexit extension to the UK policymakers.
Having witnessed a downbeat reading of Japan’s GDP, Britain’s monthly GDP and Manufacturing Production will decorate the economic calendar for now.
Technical Analysis
The 50-day simple moving average (DMA), at 131.65 now, limits the pair’s near-term upside, a break of which can propel prices to July 18 low surrounding 133.85 and then to 135.66/68 area including 100-DMA and July 25 top. Meanwhile, August 22 high close to 130.70 and 130.00 round-figure seem nearby strong supports.
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