Should we keep an eye on the pound, which has been falling sharply?
25.04.2022
- CBI Business Survey (UK)
- Remarks by BOC Governor Maclean
Last weekend, the U.S. dollar index rose to 101, while the EUR/USD pair fell by about 70 pips from 1.058 to 1.077. With the EUR/USD pair now approaching the 1.075 level—which has provided support on two recent occasions—it will be interesting to see if it rebounds again.
Among European currencies, the pound has fallen sharply, with GBP/USD dropping approximately 240 pips from 1.303 to 1.279. Unlike GBP/JPY, GBP/USD shows no clear support levels on the daily chart, and since the price has broken well below the lower boundary of the downtrend channel at 1.289 with a real body candle, we should remain cautious of further declines.
Today, at 4:00 p.m. CET, Turkey’s Economic Sentiment Index and Capacity Utilization Rate will be released; at 5:00 p.m., Germany’s IFO Business Climate Index; and at 7:00 p.m., the UK’sCBI Business Survey, the U.S. Chicago Fed National Activity Index at 9:30 PM U.S. time, the U.S. Dallas Fed Manufacturing Activity Index at 11:30 PM, and remarks by BOC Governor McClem at midnight. We will be watching for signs of strength or weakness in the pound at the start of the week.
Author: Keisuke Sakurai
