Will the pound's rise continue?

Will the pound's rise continue?

27.07.2021

In yesterday’s stock market, European markets saw a pullback, with Germany’s DAX closing at 15,618, down 0.32% from the previous day. The German IFO Business Climate Index, released yesterday, fell to 100.8—its first decline in six months—and the result, which missed market expectations, weighed on sentiment. Meanwhile, U.S. markets saw a slight rise in stock prices.U.S. new home sales for June, released yesterday, fell by about 6.6% from the previous month to an annualized rate of 676,000 units, missing market expectations. This decline appears to reflect a drop in demand for new homes due to the overall surge in housing prices.

In the foreign exchange market, the pound continues to show strength, and among the yen crosses, GBP/JPY has seen the largest gain, rising 120 pips from 151.4 to 152.6. Technically, while the pair has pulled back at the 200-period moving average (MA) on the 4-hour chart, it has broken above the 20-period MA on the daily chart; therefore, we need to carefully assess whether the upward trend will continue into this week.

Today, at 7:00 p.m. CET, the UKThe CBI Retail Trade Survey is scheduled for 19:00 European time, followed by U.S. Durable Goods Orders at 21:30 U.S. time, remarks by RBA Deputy Governor Devel at 21:35, the S&P/Case-Shiller Home Price Index at 22:00, the U.S. Consumer Confidence Index and the Richmond Fed Manufacturing Index at 23:00, and the U.S. 5-year Treasury auction at 02:00.With tomorrow’s FOMC meeting approaching, we will be closely monitoring the battle between European currencies and the U.S. dollar.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

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

3. 16.04.2026New

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

4. 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

5. 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?

6. 13.04.2026

   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

7. 10.04.2026

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

8. 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?

9. 08.04.2026

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

10. 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