- Brexit woes are back in force as investor hopes for a weekend deal fade quickly.
- Data is thin for the early week’s session, leaving headlines to play a major role in market direction.
The GBP/JPY is trading just south of the 147.00 round figure after the week’s opening gap pulled the Guppy sharply lower, down from last week’s close near 147.50 to clip into the 146.70 region.
The Sterling is seeing continued selloff action in the new week after Brexit developments continued to take a bearish turn over the weekend, and UK Prime Minister Theresa May is facing a growing call for an all-out parliamentary rebellion from her Eurosceptic political peers.
Monday is quiet for the GBP on the economic calendar, and the early session’s Rightmove House Price Index for October clipped into 1.0% (last 0.7%), but the annualized figure ticked down to 0.9% (last 1.2%), leaving the low-impact indicator to spread the middle.
Japan’s Industrial Production figures for August are due at 04:30 GMT today, but the impact is equally low, although markets are forecasting an improved reading of 5.3% for the m/m figure (last 0.7%).
GBP/JPY levels to watch
The Guppy is seeing buyers struggling to close up the opening gap as the pair struggles near four-week lows at the 50-day moving average near 146.60, and the near-term highs for the GBP/JPY remain constrained at the 200-day moving average near the 148.00 major barrier.
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