Listen to the latest market mood for the GBPJPY pair.
Weak GBP, Strong JPY
Wall St suffered its worst losses since March yesterday as global equity markets plunged around the world on COVID-19 second wave fears. The GBP should remain pressured today after GDP m/m fell by over 20% on recent data. Furthermore, the UK is expected to rule out any Brexit extension later today. This should keep the GBP pressured on the day. The JPY should remain strong on second wave virus fears as the number of infections has been creeping higher in the US in Texas, California, and Florida. Therefore expect GBPJPY sellers at market and on pullbacks today.
We expect this outlook to play out over the next 6-10 hours through to New York close.
Main Trade Risks
- The main trade risk is if there is some positive Brexit news that supports the GBP.
- The other risk is if there is some positive COVID-19 news that will result in the JPY weakening.