Should we keep an eye on the GBP/JPY pair, which fell by 3 yen from the 165-yen range in a single day?
26.04.2022
- U.S. 2-Year Treasury Auction
- Remarks by BOC Deputy Governor Lane
Yesterday, the U.S. dollar strengthened against the euro, with GBP/USD falling approximately 110 pips from 1.081 to 1.069. GBP/USD has already hit a new low for the year, and if the decline continues, there are no major support levels until the low of 1.062 seen two years ago, so we should remain vigilant for further declines.
Among European currencies, the pound fell significantly—roughly in line with the weakness seen in Oceania currencies—with GBP/JPY dropping sharply by 320 pips from 165.29 to 162.04.From a technical perspective, GBP/JPY has rebounded near the 162.00 level—the 38.2% Fibonacci retracement level of the uptrend that began on March 8 of this year—so we will be watching closely to see if the pair resumes its upward movement after a period of consolidation.
There are no major economic indicators scheduled for the European session today. During the U.S. session, U.S. durable goods orders are due at 9:30 p.m.,a speech by BOC Deputy Governor Lane at 21:55, the U.S. S&P/Case-Shiller Home Price Index at 22:00, the U.S. Consumer Confidence Index, U.S. New Home Sales, and the U.S. Richmond Fed Manufacturing Index at 23:00, and a U.S. 2-year Treasury auction at 26:00.Ahead of next week’s BOE policy meeting, we will be watching the trend of the pound, which has been weakening.
Author: Keisuke Sakurai
