The revival of demand for safe assets plays into the hands of the Japanese yen paired with the pound and holds back growth, but positive news regarding Brexit may support the British pound. As it turned out, the bulls were not very impressed with the optimistic report on jobs in the UK, and the GBP/JPY pair fluctuates between weak profits and insignificant losses near more than a month high. The pound gained amid positive news and recovered from a multi-year low to 1.3300, primarily due to optimism about Brexit. Recall that the British Parliament passed a law prescribing control over the Brexit program.
The bulls of this pair were impressed mainly because of the positive data on employment in the UK. Moreover, the prevailing cautious moods provided a slight increase in the relative safe-haven of the Japanese yen and restrained further growth of the pound. The data showed that the average weekly wage in the UK, including bonuses, increased by 4.0% in July compared with the previous month, and the unemployment rate fell to 3.8%. Given these factors, it can be assumed that the pound is likely to feel the recently received positive momentum and conquer a new peak.
