Should We Focus on the Upside Potential for the Pound, Which Is Rising Against the Yen?
09.02.2023
- Remarks by Nagel, President of the German Central Bank
- U.S. 30-Year Treasury Auction
In the U.S. currency market the previous day, 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 price found support at the 4-hour 200-SMA and halted its 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 posted the highest rate of increase—rose against the yen. The GBP/JPY pair rose by just under 120 pips, from 157.603 to 158.834.It continues to rise during today’s Asian trading session as well. On the 4-hour chart, the pair is rebounding from the lower boundary of the uptrend line, so it will be worth watching to see if the pound continues to rise into the European session.
Today, during European trading hours, the German Consumer Price Index will be released at 16:00, followed by remarks from Bank of England Governor Bailey at 18:45, along with remarks from MPC members Pill, Tenreiro, and Haskell. At 20:00, South Africa’smanufacturing production, and during U.S. trading hours, U.S. initial jobless claims at 22:30, U.S. weekly natural gas inventories at 24:30, remarks by German Bundesbank President Nagel at 26:00, and a U.S. 30-year Treasury auction at 27:00.We’ll be watching for upside potential in the pound, which is currently rising against the yen.
Author: Keisuke Sakurai
