All eyes are on whether the rising pound will be affected by comments from key figures

All eyes are on whether the rising pound will be affected by comments from key figures

08.11.2022

Yesterday, the U.S. dollar fell under pressure from the pound, which emerged as the strongest currency, with GBP/USD rising by as much as 250 pips from 1.1289 to 1.1539. GBP/USD continues to rebound from the lower boundary of its uptrend line on the 4-hour chart and has already broken above the 200-period SMA and 75-period EMA on that timeframe.We will closely monitor whether today’s remarks from key officials could trigger a further decline in the U.S. dollar.

Among European currencies, the pound continued to rise against the yen, with GBP/JPY climbing more than 3 yen from 165.630 to 169.064.GBP/JPY is currently trading at 168.789, just below the 200-period simple moving average (SMA) on the hourly chart, and appears to be taking a brief pause after its recent rally. If the upward trend continues, the pair could rise to 171.130, the upper limit of the uptrend line, so we will be closely monitoring price movements heading into the latter half of the week.

Today’s schedule includes the French trade balance and current account at 16:45 CET, remarks by German Bundesbank President Nagel at 17:00, remarks by Swiss National Bank (SNB) President Jordan at 17:15, remarks by SNB Board Member Meckl at 17:30, remarks by MPC member Pill at 18:00, and at 18:30, the AustralianRBA Governor Lowe’s remarks at 5:30 PM, Eurozone retail sales at 7:00 PM, the US NFIB Small Business Optimism Index at 8:00 PM, UK MPC Member Pill’s remarks at 1:00 AM US time, and a US 3-year Treasury auction at 3:00 AM US time. We will be watching to see if the rising pound is affected by these key figures’ remarks.