The Pound Sterling gave back some of Tuesday's gains against the US Dollar as Brexit-related hopes helped to shift sentiment.Sterling saw a 2% gain earlier, the largest single day's rise in nearly seven months. The Irish Prime Minister said that he had had a positive meeting with his 
British counterpart, Boris Johnson, which helped to revive hopes that the withdrawal from the EU will be relatively painless. Similarly, sentiment improved for higher risk assets as there now seems to be some forward movement in the trade talks between the United States and China.
The GBP/USD was trading lower at $1.2435, easing off Thursday's peak of $1.2469 as of 9:48 am in Tokyo. The USD/JPY was up at 107.9000 Yen, a gain of 0.0306%, while the EUR/JPY was trading at 118.821 Yen, up 0.0682%.
Fed Likely to take Dovish Stance
In the United States, data from Thursday showed core personal inflation flat at 2.4% on a year-over-year basis, with fall in month-over-month data to 0.1%, off the expected 0.2% and down from the previous reading of 0.3%. That news has led FX traders to presume that the Federal Reserve Bank is likely to move forward with an interest rate cut later this month. Later today, two of the Federal Reserve's key policy makers are due to speak and could further solidify expectations.