Should We Keep an Eye on the Pound-Yen Pair, Which Fell 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 of Canada
The previous day, the U.S. dollar showed signs of strength against the euro, and the GBP/USD pair fell by 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 resistance levels until the low from two years ago at 1.062, so we should remain vigilant for further declines.
Among European currencies, the pound—which weakened roughly in line with Oceania currencies—saw a particularly sharp decline, with the GBP/JPY pair falling 320 pips from 165.29 to 162.04.From a technical perspective, GBP/JPY has rebounded near 162.00—the 38.2% Fibonacci retracement level—from the uptrend that began on March 8 of this year. 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 21:30, remarks by BOC Deputy Governor Lane are scheduled for 21:55, the U.S. S&P/Case-Shiller Home Price Index is set for 22:00,at 23:00, the U.S. Consumer Confidence Index, U.S. New Home Sales, and the U.S. Richmond Fed Manufacturing Index; and at 26:00, a U.S. 2-year Treasury auction. Ahead of next week’s BOE policy rate meeting, we will be watching the movements of the pound, which has been trading on a weak note.
Author: Keisuke Sakurai
