Should we keep an eye on the pound’s direction?

Should we keep an eye on the pound’s direction?

17.05.2021

Last weekend, the three major U.S. stock indices all rose, leading to a market environment characterized by rising stock prices, a weaker U.S. dollar, and lower interest rates. Yields on 5-, 10-, and 30-year U.S. Treasuries all fell, and the VIX (fear index) also dropped to 18.18.

In the foreign exchange market, the Dollar Index—which measures the dollar’s relative strength—has remained flat at 90.3, indicating that the U.S. dollar has once again lost its direction. The AUD/USD pair rose last weekend to reach 0.779, but fell during today’s Asian trading session and is currently trading around 0.775. The EUR/USD pair has also fallen, while the GBP/USD pair has risen slightly.

Today, at 3:30 PM, Swiss producer import prices; at 9:15 PM, Canadian housing starts; at 9:30 PM, Canadian international securities turnover and the U.S. NY Fed Manufacturing Index;at 10:00 PM, Canadian Existing Home Sales; at 11:00 PM, the U.S. NAHB Housing Market Index; at 11:05 PM, remarks by U.S. Federal Reserve Vice Chair Clarida; at 11:15 PM, remarks by UK MPC Member Tenreyro; and at 11:25 PM, remarks by U.S. Atlanta Fed President Bostic and U.S. Federal Reserve Vice Chair Clarida.With tomorrow’s UK employment data on the horizon, I’d like to wait and see how the pound moves.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed