- GBP/JPY has slid back from earlier highs north of the 140.00 level to consolidate around 139.50.
- The pair still trades in the green, however, as traders await the outcome of Brexit talks between Johnson and von der Leyen
GBP/JPY surged as high as the 140.30s on Wednesday, aided by positive comments from UK Cabinet Minister Michael Gove who intimated that a compromise of the issue of fisheries might be possible. However, GBP softened during US trading hours amid a bout of profit-taking, as well as a dose of realism that Brexit talks remain in the balance, with numerous EU officials saying that the chances of a deal are slim over recent days. The pair slipped back beneath 140.00 and has since consolidated about the 139.50 mark, where it currently trades heading into the Wednesday FX market close.
Johnson/von der Leyen talks still going
More than two and half hours in, UK PM Boris Johnson and EU Commission President von der Leyen’s diner, during which the two are currently discussing the way forward in Brexit negotiations, is still ongoing.
Whether this is a good sign that they will soon be able to announce some kind of meaningful breakthrough in the talks, or is a sign of the ongoing difficulties the two sides still face, is yet to be known.
But GBP traders are primed to react; good news in the form of a major breakthrough towards a deal will be greeted with jubilation and GBP will get a boost. Mind you, any concessions made by von der Leyen will have to also be palatable to the French, who have been taking a tough stance on negotiations and threatened to veto any deal that gives too much away to the Brits.
Meanwhile, if the conclusion of talks is to continue negotiations into the weekend, the reaction is likely to be muted as this is currently the markets base case scenario. If in an unlikely scenario talks see a complete breakdown, with Johnson and von der Leyen coming away from the meeting with the conclusion that a free trade deal is not possible, GBP will be slammed.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks

AUD/USD faces the next hurdle at 0.6400
AUD/USD rose markedly and approached the key 0.6400 hurdle at the beginning of the week, always in response to rising weakness in the US Dollar and hopes of fresh stimulus in China.

EUR/USD keeps the upside target at 1.1000
EUR/USD extended further Friday’s recovery and traded at shouting distance from the YTD peaks near 1.0950 in response to increased selling pressure in the Greenback and the improved political scenario in Germany.

Gold consolidates around $3,000 ahead of Fed
Gold prices has started the week on a positive tone and maintains their trade around the key $3,000 mark per troy ounce on the back of the modest pullback in the Greenback and mixed US yields across the curve,

Crypto markets could gain $1 trillion as Gold price reaches $3,000: Tokenized-Gold expert explains
Tokenized-Gold assets hit a $1.8 billion market cap on Monday after the Gold (XAU) price marked new all-time highs above $3,000 per troy ounce. In an exclusive interview with FXStreet, RAAC CEO Kevin Rusher explains how tokenized Gold assets could impact the next crypto market recovery phase.

Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium
Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.