Should we be wary of a decline in the pound against the U.S. dollar?

Should we be wary of a decline in the pound against the U.S. dollar?

25.11.2021

Yesterday, two of the three major U.S. stock indices rose, resulting in a market environment characterized by higher stock prices, stable interest rates, and lower oil prices. WTI crude oil fell slightly to $78.40, while gold declined alongside the strengthening U.S. dollar, trading around $1,792. The VIX (fear index) fell by about 4% and is currently hovering around 18.5.

In the foreign exchange market, the pound weakened against the U.S. dollar, with the GBP/USD pair falling from 1.337 to 1.331. Technically, the GBP/USD pair is trending lower around the 20-period moving average on the 4-hour chart and has already hit a new low for the year. Whether it will continue to decline will depend on the strength of the U.S. dollar.

Today’s economic indicators include Germany’s Q3 GDP (revised) and GfK Consumer Confidence Survey at 4:00 PM, South Africa’s Producer Price Index at 6:30 PM, the release of the ECB’s October meeting minutes at 9:30 PM, remarks by ECB President Lagarde at 10:30 PM, and remarks by UKRemarks by MPC Member Haskell, at 2:30 AM: Remarks by BOE Governor Bailey, and at 6:00 AM the following day: NZ ANZ Consumer Confidence Index. We will watch the situation carefully to see if the strength of the firm U.S. dollar holds.

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