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

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

21.12.2021

Yesterday, the three major U.S. stock indices all fell by more than 1% for the second consecutive day, creating a risk-off market characterized by falling stock prices, rising interest rates, and lower oil prices. The VIX (fear index) rose above its benchmark level of 20 to 22.8. Similar price movements were seen in Europe, where the spread of the Omicron variant is causing widespread concern. The announcement of a lockdown in the Netherlands also appears to have impacted stock prices.

In the foreign exchange market, the pound’s decline has been particularly noticeable; combined with the rise in U.S. 10-year Treasury yields, the GBP/USD pair fell from 1.324 to 1.317. However, on the 4-hour chart, the price has bounced off the 1.317 level multiple times, forming a lower wick, so we need to carefully assess whether a rebound is likely.

Today’s schedule includes the German GfK Consumer Confidence Survey, Swiss trade balance, Turkish Consumer Confidence Index, and UK CBI Retail Trade Survey at 4:00 PM; Canadian retail sales and U.S. third-quarter current account balance at 10:30 PM; a U.S. 20-year Treasury auction at 3:00 AM; and the New Zealand ANZ Consumer Confidence Index at 6:00 AM the following day.We should remain vigilant for sudden price movements caused by pre-Christmas position adjustments and keep a close eye on price trends.

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