Should we keep an eye on the pound’s weakening trend?

Should we keep an eye on the pound’s weakening trend?

20.08.2021

Yesterday, U.S. stock prices fell slightly, leading to a risk-off market characterized by falling stocks, interest rates, and oil prices. The yield on the 10-year U.S. Treasury note dropped to 1.23%, weighing on the U.S. dollar’s upside. The U.S. Philadelphia Fed Manufacturing Index for August, released yesterday, came in at 19.4, below the forecast of 23.0. This reflected a decline in demand due to the spread of the Delta variant.

In the foreign exchange market, with the US dollar facing resistance at higher levels, the pound has been falling notably, with GBP/USD dropping to 1.361.Technically, GBP/USD has already lost support from its moving average on the daily chart. If it fails to reverse at the recent low of 1.357, there is a risk of a significant break below that level, making this a situation that requires careful judgment. Additionally, the pound is weakening against the euro, another European currency, and EUR/GBP has risen for two consecutive days. It is currently trading around 0.857.

Today’s key economic indicators include UK retail sales and the German producer price index at 3:00 PM, Canadian retail sales at 9:30 PM, and remarks by Kaplan, President of the Dallas Federal Reserve, at midnight. We will be closely monitoring how European currencies, including the pound, react to geopolitical risks.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

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

3. 20.04.2026New

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

4. 17.04.2026New

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

5. 16.04.2026New

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

6. 15.04.2026

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

7. 14.04.2026

   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

8. 13.04.2026

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

9. 10.04.2026

   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?

10. 09.04.2026

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