Amid the summer lull, should we keep an eye on the pound’s upside potential?

Amid the summer lull, should we keep an eye on the pound’s upside potential?

09.08.2021

Last weekend, stock prices rose in the U.S. market, creating a risk-on environment characterized by rising stock prices, higher interest rates, and lower oil prices. The U.S. employment report released on the 6th significantly exceeded market expectations, with nonfarm payrolls reaching 943,000. The unemployment rate also fell from 5.9% to 5.4%, which had a positive impact on the market. In response to the U.S. employment report, yields on both long-term and short-term U.S. Treasuries have risen.

In the foreign exchange market, the U.S. dollar emerged as the strongest among major currencies, with the USD/JPY pair rising to 110.35. The GBP/USD pair fell, briefly touching 1.385, but the decline was limited due to the pound’s underlying strength. Since the pound is showing strength against the euro and Oceania currencies, we should remain cautious about further upside movements just in case.

Today, the German trade balance is scheduled for release at 3:00 PM Asia time, followed by the U.S. JOLTS survey and remarks by Bostic, President of the Atlanta Fed, at 11:00 PM U.S. time, and remarks by Barkin, President of the Richmond Fed, at 1:00 AM.Since markets in Singapore and Japan are closed today, please be cautious of sudden price fluctuations. Additionally, with the U.S. Consumer Price Index (CPI) scheduled for release on Wednesday, the 11th, and a general decline in market participants this week, please remain vigilant for sharp price movements.

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