Should investors be wary of the pound, which has fallen below 1.1 dollars per pound amid unabated selling?

Should investors be wary of the pound, which has fallen below 1.1 dollars per pound amid unabated selling?

26.09.2022

Last weekend, the U.S. dollar continued its upward trend as the Dollar Index rose to 113.9, causing the EUR/USD pair to fall 180 pips from 0.9850 to 0.9667.The EUR/USD pair continued to decline during today’s Asian trading session, touching 0.9552. The string of new lows shows no signs of stopping. Despite comments from German Bundesbank President Nagel that “the ECB needs to raise rates again even if it harms economic growth,” the pair has been unable to withstand the strength of the U.S. dollar.

Among European currencies, the pound plummeted against both the yen and the U.S. dollar.Following the announcement of the Truss administration’s major tax cut plan last weekend, the yield on 10-year UK government bonds rose to 3.8%. The pound fell against the dollar from 1.1271 to 1.0836. Furthermore, during Asian trading hours today, it plummeted by 500 pips, touching 1.0304. Parity—one pound to one dollar—is now looking increasingly likely.

Today’s schedule includes the Turkish Economic Sentiment Index at 4:00 PM, remarks by German Bundesbank President Nagel at 4:00 PM, the German IFO Business Climate Index at 5:00 PM, the U.S. Chicago Fed National Activity Index at 9:30 PM, remarks by ECB President Lagarde at 10:00 PM, and remarks by U.S. Federal Reserve Governor Collins at 11:00 PM:Boston Fed President remarks, at 11:30 PM the U.S. Dallas Fed Manufacturing Activity Index, at 1:00 AM UK MPC member Tenreyro remarks, U.S. Bostic: Atlanta Fed President remarks, at 1:30 AM U.S. Logan:Dallas Fed President remarks, 2:00 AM: US 2-year Treasury auction, 3:35 AM: NZ RBNZ Governor Orr remarks, and 5:00 AM: US Cleveland Fed President Mester remarks are scheduled. With the sell-off in the pound showing no signs of stopping, we will be paying close attention to the content of UK MPC Member Tenreiro’s remarks.

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?