Concerns over the pound's upside potential as its rise shows no signs of stopping

Concerns over the pound's upside potential as its rise shows no signs of stopping

04.10.2022

In the previous day’s U.S. currency trading, the U.S. dollar fell after the September ISM Manufacturing PMI, released during U.S. trading hours, declined to 50.9 from the previous reading of 52.8. The USD/JPY pair touched 145.306 before reversing lower, dropping to 144.153. The decline halted as the pair found support at the 200-period SMA on the hourly chart.During today’s Asian session, the pair is attempting to rise, but since the RSI continues to show divergence on the daily chart, we will monitor closely to see if the rally remains limited.

European currencies rose yesterday as the pound gained ground following the Truss administration’s withdrawal of a plan to lower the top income tax rate, one of its major tax cut proposals. The GBP/JPY pair rose from 160.560 to 163.869.During today’s Asian trading session, the pair has hit a new high, rising to 164.099. GBP/JPY has already gained more than 3.6 yen this week alone, but since the daily RSI has not reached 70 and there are no signs of overheating, it will be worth watching to see if the upward trend continues.

Today, the Eurozone Producer Price Index will be released at 6:00 p.m. CET, and at 10:00 p.m. EST, Logan:Dallas Fed President’s remarks, U.S. Williams: NY Fed President’s remarks, U.S. Mester: Cleveland Fed President’s remarks at 10:15 PM, U.S. Manufacturing Orders and U.S. JOLTS Survey at 11:00 PM, Eurozone ECB President Lagarde’s remarks at midnight, and U.S. Daly: San Francisco Fed President’s remarks at 2:00 AM.We should be wary of the upside potential for the pound, which shows no signs of stopping its rise.

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?