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, U.S. currencies fell under pressure from the pound, which had become the strongest currency, and the GBP/USD pair rose 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 SMA and 75 EMA on that timeframe. We will monitor the situation carefully to see if today’s remarks by key officials could lead to 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 following its rebound. If the upward trend continues, the pair could rise to 171.130, the upper boundary of the uptrend line, so we will be closely monitoring price movements heading into the latter half of the week.

Today, during European trading hours, France’s trade balance and current account balance will be released at 16:45, followed by remarks by Germanremarks by German Bundesbank President Nagel, at 17:15 remarks by Swiss SNB President Jordan, at 17:30 remarks by Swiss SNB Board Member Meckl, at 18:00 remarks by UK MPC Member Pill, at 18:30 remarks by AustralianRBA Governor Lowe’s remarks at 17:30, EU retail sales at 19:00, the U.S. NFIB Small Business Optimism Index at 20:00, UK MPC Member Pill’s remarks at 25:00 U.S. time, and a U.S. 3-year Treasury auction at 27:00.It will be interesting to see whether the rising pound will be affected by these remarks from key officials.