Should we be on alert for fluctuations in the pound following the release of UK economic indicators?

Should we be on alert for fluctuations in the pound following the release of UK economic indicators?

12.12.2022

Last weekend, U.S. currencies held firm on the downside following the release of the U.S. November PPI, with the euro/dollar falling by about 80 pips from 1.0587 to 1.0503.The U.S. November Producer Price Index (PPI), released on the 9th, came in at 7.4% year-over-year—exceeding market expectations of 7.1% despite falling from the previous reading of 8.0%. This led to a surge in the U.S. dollar on speculation that tomorrow’s scheduled U.S. Consumer Price Index (CPI) release may be less likely to show a decline.

Among European currencies, the pound strengthened against the yen ahead of today’s GDP release. GBP/JPY rose by approximately 1.7 yen, from 166.258 to 168.056, hitting a new high for the month. Since GBP/JPY continues to trade with support from the 20-day moving average (MA) on the weekly chart, we intend to maintain a bullish outlook and monitor price movements until the pair breaks below the weekly 20-day MA.

Today, at 15:00 Asia time, Japan’s machine tool orders will be released; at 16:00 Europe time, the UK’s GDP, industrial production, and trade balance, along with Turkey’s unemployment rate and current account balance, will be released; and at 21:00, India’sIndustrial Production and India’s Consumer Price Index at 16:00 (Asia time); the US 3-year Treasury auction at 01:30 (US time), the US 10-year Treasury auction at 02:00, the US budget balance at 02:08, and remarks by Bank of Canada Governor Macklem at 02:25. With a series of economic indicators scheduled for release in the UK, we will be closely monitoring price movements to see if the pound experiences significant fluctuations.

Past Market Reports

1. 21.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 14.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 13.04.2026

   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. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 09.04.2026

   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. 08.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?