All eyes are on the direction of the pound following the election of the new prime minister, which has sparked a rally

All eyes are on the direction of the pound following the election of the new prime minister, which has sparked a rally

07.09.2022

In yesterday’s U.S. currency markets, the Dollar Index surged to 110.5, making the U.S. dollar the strongest currency. The AUD/USD pair fell from 0.6830 to 0.6728.The pair continues to test lower levels during today’s Asian session. With WTI crude oil falling to $85.60 and the AUD/USD daily RSI yet to reach 30—indicating room for further movement—investors should remain cautious of the potential for continued declines.

European currencies saw the pound rally on the back of the election of the UK’s new Prime Minister, Liz Truss, the day before yesterday. Combined with a weaker yen, the GBP/JPY pair rose by 3.3 yen in a single day.During today’s Asian trading session, the pair hit a new high, touching 165.251. GBP/JPY temporarily fell by about 100 pips but subsequently recovered. It is currently trading at 164.682. However, as a triple top pattern is forming on the hourly chart, we should be wary of a short-term decline.

Today’s schedule includes German industrial production and UK Halifax house prices at 3:00 PM; Eurozone Q2 GDP and remarks by Bank of England Governor Bailey at 6:00 PM; the US MBA mortgage applications index at 8:00 PM; US and Canadian trade balances at 9:30 PM; and remarks by US Federal Reserve’s Barkin at 10:00 PM:Richmond Fed President remarks, at 11:00 PM: Canada’s BOC policy rate and statement release, Canada’s Ivey Purchasing Managers’ Index, U.S. Mester: Cleveland Fed President remarks, at 1:40 AM: U.S. Brainard: Fed Vice Chair remarks, and at 3:00 AM: U.S. Beige Book and U.S. Barr: Fed Vice Chair remarks.We will be watching the direction of the pound, which has seen a rally following the election of the new prime minister.

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?