Should we keep an eye on the upside potential for the pound, which is rising against the yen?
09.02.2023
- Remarks by Nagel, President of the German Federal Bank
- U.S. 30-Year Treasury Auction
In the previous day’s U.S. currency trading, the U.S. dollar strengthened against the Australian dollar following remarks by Federal Reserve Governor Waller that “inflation has not yet been brought under control, and interest rates may remain at levels higher than some market expectations.”The AUD/USD pair fell by just over 70 pips from 0.6995 to 0.6919. It broke below the 4-hour 20-MA and fell to the 200-SMA line. However, since the 4-hour 200-SMA acted as support and halted the decline, we will be watching closely to see if a rebound occurs during U.S. trading hours.
Among the euro-yen crosses, the pound—which saw the sharpest rise—gained ground against the yen. The GBP/JPY pair rose by just under 120 pips, climbing from 157.603 to 158.834. It has continued to climb during today’s Asian trading session. On the 4-hour chart, the pair is currently rebounding from the lower boundary of an uptrend line, so it will be worth watching to see if the pound continues to rise into the European session.
Today’s schedule includes the German Consumer Price Index at 16:00 (European time), remarks by Bank of England Governor Bailey, MPC member Pill, MPC member Tenreiro, and MPC member Haskell at 18:45 (European time), South African manufacturing production at 20:00 (European time), U.S. initial jobless claims at 22:30 (U.S. time),at 12:30 AM, US weekly natural gas inventories; at 2:00 AM, remarks by German Bundesbank President Nagel; and at 3:00 AM, a US 30-year Treasury auction. We will be watching for upside potential in the pound, which has been rising against the yen.
Author: Keisuke Sakurai
