Caution over chasing the falling pound's lows?

Caution over chasing the falling pound's lows?

08.03.2022

In the previous day’s U.S. currency markets, the Dollar Index rose to 99.2, gaining ground even against the currencies of commodity-producing nations, which had been hitting new highs day after day. The AUD/USD pair touched this year’s high of 0.744 before falling back by about 130 pips to 0.731.From a technical perspective, since the AUD/USD broke above the 200-day SMA on the daily chart and has since retested it, we will be watching closely to see if the pair resumes its upward trend after this pullback.

Among European currencies, the pound stood out as the weakest at the start of the trading day, with the GBP/JPY pair falling approximately 120 pips from 152.22 to 150.99. Since the GBP/JPY has already broken below its support level on the daily chart, traders should be wary of a further decline toward the next support level around 149.89.

Today, at 4:00 PM, Germany’s industrial production; at 6:30 PM, South Africa’s Q4 GDP (final); at 7:00 PM, the Eurozone’s Q4 GDP (final);at 8:00 PM, the U.S. NFIB Small Business Optimism Index; at 10:30 PM, Canada’s trade balance and the U.S. trade balance; at midnight, U.S. wholesale inventories (final); at 3:00 AM, the U.S. 3-year Treasury auction; and at 6:45 AM the following day, New Zealand’s Q4 manufacturing sales. I plan to keep track of various headline news while carefully assessing currency strength and weakness.

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?