Should we be wary of the pound’s upward momentum amid its volatile price movements?

Should we be wary of the pound’s upward momentum amid its volatile price movements?

14.10.2022

Yesterday, the U.S. dollar emerged as the strongest currency during U.S. trading hours after the CPI came in at 8.2%, 0.1 percentage points above the market forecast of 8.1%. However, as U.S. Treasury yields declined, upward momentum weakened and the dollar lost steam. Although the EUR/USD pair fell immediately after the CPI release, it subsequently rose to 0.9806.The EUR/USD pair had been trading in a range centered around 0.9700, but yesterday’s rally pushed it higher. We will be watching closely to see if it can hold the level around 0.9793.

Among European currencies, the pound has been on an upward trend, with GBP/JPY rising by just under 5 yen from 162.341 to 167.2880. Technical analysis has become less effective for GBP/JPY due to the major tax cut plan under the new Truss administration, and the pair has been trading within a 7-yen range on a daily basis. Given the extremely volatile price movements, we should be wary of sharp fluctuations heading into the weekend.

Today, at 3:45 PM, France’s Consumer Price Index; at 4:00 PM, Turkey’s Home Sales; at 6:00 PM, the Eurozone’s Trade Balance; at 9:30 PM, U.S. Retail Sales, U.S. Import Price Index, Canada’s Manufacturing Shipments, and Canada’s Wholesale Sales;at 10:00 PM: Canadian Existing Home Sales; at 11:00 PM: U.S. University of Michigan Consumer Sentiment Index, U.S. Business Inventories, and remarks by George, President of the Kansas City Federal Reserve Bank; at 11:30 PM: remarks by Cook, Member of the Federal Reserve Board; and at 1:15 AM: remarks by Waller, Member of the Federal Reserve Board. We should remain cautious regarding the upward momentum of the pound, which is experiencing significant price fluctuations.

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?