All eyes are on whether the pound, which has been falling against the yen, will recover

All eyes are on whether the pound, which has been falling against the yen, will recover

26.01.2023

In the U.S. currency market yesterday, the euro/dollar pair rose as the Dollar Index fell to 101.6. The euro/dollar pair climbed by just under 70 pips, from 1.0857 to 1.0923. Since the start of this week, the pair has continued to trade in a range near its highs. However, on the 4-hour chart, the 20-period moving average is acting as support, causing the pair to rise slightly; therefore, it will be worth watching to see if the dollar’s weakness becomes apparent heading into the weekend.

European currencies saw the pound weaken against the yen after yesterday’s release of the UK’s December Producer Price Index (PPI) showed that input prices fell year-on-year to 16.5% from the previous reading of 18.0%, while output prices also unexpectedly dropped to 14.7%. GBP/JPY fell by approximately 140 pips from 160.932 to 159.506.The pair temporarily dipped below the 200-period EMA on the hourly chart. However, on the daily chart, it is forming a triangle consolidation pattern with widening highs and lows, so caution is advised regarding the direction of the market during European trading hours.

Today’s schedule includes: Japan’s machine tool orders at 3:00 PM, South Africa’s Producer Price Index at 6:30 PM, the UK’s CBI Retail Trade Survey at 8:00 PM, U.S. initial jobless claims and Q4 GDP at 10:30 PM, U.S. personal consumption,US Core PCE Deflator, US Durable Goods Orders, US Wholesale Inventories, US Chicago Fed National Activity Index, US New Home Sales at 12:00 AM, US Weekly Natural Gas Inventories at 12:30 AM, US Kansas City Fed Manufacturing Activity Index at 1:00 AM, and a US 7-Year Treasury Auction at 3:00 AM.I want to carefully assess whether the pound, which has been falling against the yen, will recover.

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?