GBP/JPY shrugs off contradicting UK election polls amid broad risk-on

• GBP/JPY probes a multi-month high hit on Thursday.
• Contrasting polls for the UK election raise doubts over the Tory leadership, ITV’s political debate keep Conservatives worried.
• China's data improve risk sentiment despite doubts over phase-one.

With the market’s risk sentiment cheering China data, GBP/JPY takes the bids to 141.60 ahead of the UK open on Monday.

Not only the official Purchasing Managers’ Index (PMI) but Caixin Manufacturing PMI for November also portrays recovery in China’s key activity. As a result, traders ignored contradicting polls concerning the December month election in the United Kingdom’s (UK). While UK Survation and The Observer has been flashing 11 point leads of the ruling Conservative Party over the main opposition Labour Party, a Savanta ComRes survey for The Sunday Telegraph put the Conservatives as 43%, as a two-point rise since early last week.

Also doubting the pair’s strength is the recently downbeat response to the Tory representatives in the seven-party debate on ITV. Further, the quote seems also ignoring doubts over the phase-one deal between the United States (US) and China.

Even so, the US 10-year treasury yields gain nearly four basis points (bps) to 1.81% while stocks in Asia are also marking gains.

Moving on, UK Manufacturing PMI for November, expected to remain unchanged at 48.3, can entertain investors while headlines concerning the British political and/or trade will dominate the moves.

Technical Analysis

Unless providing a successful break of 141.86, prices are less likely to aim for March-April lows near 143.72/78.