Will the pound's upward momentum against the U.S. dollar continue?
26.07.2022
- U.S. Richmond Fed Manufacturing Index
- U.S. S&P/Case-Shiller Home Price Index
In the previous day’s trading, the U.S. dollar weakened against European currencies, and the GBP/USD pair rose from 1.1959 to 1.2086.From a technical perspective, while the GBP/USD pair is trading just below the 200-period SMA on the 4-hour chart, it has touched the -2σ level of the Bollinger Bands on the weekly chart, and the RSI is at a low level of 32. Therefore, we will be closely monitoring whether the rebound will continue.
European currencies fell against Oceania currencies as the German Ifo Business Climate Index for July, released yesterday, came in below the previous reading at 88.6—its lowest level in two years. The EUR/AUD pair fell by approximately 130 pips from 1.4802 to 1.4677.During today’s Asian trading session, the pair continues to test lower levels. If the EUR/AUD breaks below its recent low of 1.4602, it could lose support and accelerate its decline, so we will need to closely monitor the direction of the market.
Today, the UK CBI Retail Trade Survey is scheduled for 19:00 European time, the Turkish Housing Price Index for 20:30, the U.S. S&P/Case-Shiller Home Price Index for 22:00 U.S. time,at 11:00 p.m., the U.S. Consumer Confidence Index, New Home Sales, and the Richmond Fed Manufacturing Index, and at 2:00 a.m., a U.S. 5-year Treasury auction. We will be watching closely to see if the pound, which has been showing strength, will rebound and rise against the U.S. dollar.
Author: Keisuke Sakurai
