Should we keep a close eye on the direction of the pound as it rebounds?

Should we keep a close eye on the direction of the pound as it rebounds?

07.07.2022

In the previous session, the U.S. dollar strengthened against the euro, with GBP/USD falling by approximately 110 pips from 1.0276 to 1.0161. GBP/USD continues to decline along the 20-period moving average on the hourly chart, repeatedly hitting new lows for the year. Since the pair has already entered a support-free zone on the weekly chart, we will be closely monitoring whether the dollar’s strength persists and drives the pair lower.

European currencies are trading lower, with the pound weakening amid mounting calls for British Prime Minister Johnson to step down; the GBP/JPY pair fell by approximately 2.1 yen, from 162.554 to 160.389. However, the pair has rebounded during today’s Asian trading session and has already broken above the 20-period moving average (MA). We will be watching closely to see if it continues to rise and extends its gains toward the 200-period moving average (SMA) around 164.300.

Today, at 3:00 PM Asia time, we have German industrial production and UK Halifax house prices; at 8:30 PM Europe time, the ECB meeting minutes will be released, along with US Challenger job cuts; at 9:30 PM US time, we have Canadian trade balance, US initial jobless claims, and US trade balance;at 10:00 PM UK time, remarks by a member of the Bank of England’s Monetary Policy Committee (MPC); at 11:00 PM, the Canadian Ivey Purchasing Managers’ Index; at 11:30 PM, U.S. weekly natural gas inventories; at 12:00 AM, U.S. weekly crude oil inventories; at 1:05 AM, remarks by a member of the Bank of England’s Monetary Policy Committee (MPC); and at 2:00 AM, remarks by James Bullard, President of the St. Louis Federal Reserve Bank.We will be closely monitoring the direction of the pound, which is rebounding and rising.

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?