- GBP / JPY bulls are probing the November 17th high with cautious optimism.
- S&P 500 Futures, Asia-Pacific stocks gain as traders ignore Fed-Treasury battle amid vaccine hopes, Brexit updates.
- UK Times suggests deal is on the cards, The Telegraph cites anxiety despite 95% deal.
- Japan is closed for Thanksgiving Day, with UK PMIs in the spotlight.
GBP / JPY hovers around intraday high near 138.25, up 0.17% on a day, amid Monday’s Asian trading. Even though Japanese markets are off, the risk mood favors the pair to probe the one-week high.
Among the positive catalysts, optimism over Brexit and the UK’s intention to ease coronavirus (COVID-19) lockdown measures, coupled with vaccine hopes, are gaining particular attention. Also supporting the mood could be clues of further stimulation from Japanese Prime Minister (PM) Yoshihide Suga.
As the European Union (EU) and UK approach the Brexit deadline, the latest improvements in trade talks keep GBP / JPY traders hoping for a smooth departure from former neighbors. However, The Guardian quotes British Chancellor Rishi Sunak to mark the UK’s sticking points while The Telegraph suggests the bloc’s doubts on key issues such as fisheries, governance and competition rules.
Elsewhere, Scotland, Wales and Northern Ireland are set to remove restrictions on virus-related activities before Christmas, while reports that Pfizer is awaiting regulatory approval in the UK favor also the mood of risk. Additionally, the US Food and Drug Administration’s decision to take Regeneron’s anti-covid antibody therapy offered additional positive results for risks. It should also be noted that Japanese Prime Minister Suga recently said that he will put in place policies to strengthen economic recovery.
Read: Coronavirus update: UK and France expected to ease restrictions, Germany preparing to extend until December 20
That said, S&P 500 futures and stocks in Asia-Pacific, excluding Japan, are showing positive signals while the UK FTSE is also marking intraday gains of 0.40% at press time.
Read: S&P 500 Futures extends recovery by week to low as vaccine expectations rise
With the UK’s preliminary manufacturing and services PMIs for November occupying the economic calendar, traders are less likely to be disappointed with Japan.
The ability of GBP / JPY buyers to retreat from the October high, needless to mention a roughly 100-day SMA, favors the odds of recalling the 139.00 line on the chart.