It remains to be seen whether the falling pound will recover

It remains to be seen whether the falling pound will recover

05.09.2022

U.S. currencies rose slightly last weekend as the August U.S. employment report exceeded market expectations. Immediately after the release of the data, the USD/JPY pair climbed to 140.793. Although it subsequently fell, it has been trending higher again during today’s Asian trading session. The USD/JPY is currently trading around 140.368 and is positioned above the 20-period moving average on the hourly chart, so it will be worth watching to see if it continues to rise.

Among European currencies, the pound has emerged as the weakest, with the GBP/USD pair falling by approximately 90 pips from 1.1587 to 1.1495. The decline has continued into today’s Asian trading session, with the pair hitting a new low for the year. The GBP/USD is currently trading at 1.1449, just shy of the next support level at 1.1433; we will be watching closely to see if the pair rebounds at this support level.

Today’s economic indicators include Turkey’s Consumer Price Index and Producer Price Index at 16:00 CET, Switzerland’s Q2 GDP at 16:00 CET, France’s Services PMI (final reading) at 16:50 CET, Germany’s Services PMI (final reading) at 16:55 CET, the Eurozone’s Services PMI (final reading) at 17:00 CET,at 17:30, the UK Services PMI (final reading); at 18:00, Eurozone retail sales; and at 24:30 (US time), remarks by a member of the Bank of England’s Monetary Policy Committee (MPC). With US markets closed today, we will be watching to see if the pound regains momentum during US trading hours.

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?