Should investors be wary of the pound’s volatile movements?

Should investors be wary of the pound’s volatile movements?

12.10.2022

In the previous day’s U.S. currency markets, the U.S. dollar remained firm as U.S. Treasury yields rose across the board. The USD/JPY pair rose to 146.388, marking a 24-year high. However, at today’s press conference, Finance Minister Suzuki stated, “Sudden price fluctuations are undesirable. Intervention is not something we would undertake simply because the exchange rate reaches this level.” His remarks confirmed that the government is more concerned about sharp fluctuations in volatility than about the level of the exchange rate itself.

Although Bank of England Governor Bailey had previously stated that the asset purchase program would end on the 14th of this week as originally planned, his announcement today that the program would be extended caused the pound to experience significant volatility. The GBP/JPY exchange rate fell by approximately 3 yen, from 162.637 to 159.718. Prices fluctuated wildly as the market reacted to his contradictory remarks.

Today’s schedule includes UK GDP and UK industrial production at 3:00 PM, remarks by UK MPC member Haskell at 5:00 PM, Eurozone industrial production at 6:00 PM, the US MBA Mortgage Applications Index at 8:00 PM, remarks by UK MPC member Pill at 8:35 PM, the US Producer Price Index at 9:30 PM, and the EurozoneECB President Lagarde’s remarks, 11:00 PM: US Minneapolis Fed President Kashkari’s remarks, 2:00 AM: UK MPC Member Mann’s remarks, US 10-year Treasury auction, 2:45 AM: US Fed Vice Chair Barr’s remarks, and 3:00 AM: Release of the US FOMC minutes.We should remain vigilant regarding the pound, which is experiencing significant volatility.

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?