Will the pound’s rally ahead of tomorrow’s jobs report continue?

Will the pound’s rally ahead of tomorrow’s jobs report continue?

18.07.2022

Last weekend, the U.S. dollar index, which had risen to the high 108s, fell back to 107.9, causing the dollar to weaken against the euro. The EUR/USD pair rebounded by about 90 pips from 1.0005 to 1.0095, showing a recovery from below parity.Technically, the EUR/USD has broken above the 20-period moving average (MA) on the 4-hour chart with a real body, and the 4-hour RSI is hovering around 54, just below 70. Therefore, we will be watching closely to see if it extends its gains toward the recent high of 1.0182.

Among European currencies, the pound rose as it rebounded against the weakening U.S. dollar, with GBP/USD climbing approximately 70 pips from 1.1805 to 1.1875.The pair continued to rebound during today’s Asian session, climbing as high as 1.1906. However, resistance from the 200-period simple moving average (SMA) looms above on the hourly chart, and since the pair has continued to decline without breaking above the hourly 200-SMA since June 28, traders should remain cautious of another reversal and decline.

Today, at 6:00 p.m. CET, MPC member Saunders of the Bank of England will speak; around 8:00 p.m. CET, Bank of America will report its second-quarter earnings;around 9:00 PM for Goldman Sachs’ Q2 earnings, at 9:15 PM for Canada’s housing starts, at 11:00 PM (U.S. time) for the NAHB Housing Market Index, and at 1:00 AM for U.S. securities investment. With tomorrow’s jobs report on the horizon, we’ll be closely watching to see if the pound’s recent rally continues.

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?