Market participants are cautiously monitoring the upside potential of the pound, which has become the strongest currency

Market participants are cautiously monitoring the upside potential of the pound, which has become the strongest currency

15.02.2023

In the previous day’s U.S. currency trading, the U.S. dollar rose after the January U.S. CPI came in higher than market expectations at 6.4% year-over-year.The AUD/USD pair fell from 0.7029 to 0.6921. The decline came after the pair touched the +3σ line of the 4-hour Bollinger Bands. Since the start of this month, AUD/USD has been trading in a range between 0.6868 and 0.7010, and on the daily chart, price action is currently searching for direction just below the 20-day moving average. Therefore, we should pay close attention to the strength or weakness of the market heading into the latter half of the week.

Among European currencies, the pound rose against the yen after yesterday’s release of the fourth-quarter unemployment rate, which came in at 3.7%. GBP/JPY rose from 160.114 to 162.160, following the 10-period moving average on the hourly chart. The 4-hour RSI reached 74.Although GBP/JPY has been rising with the 4-hour RSI above 70, no RSI divergence has occurred, so we should watch for a continued rise during European trading hours.

Today, at 4:00 PM: UK Consumer Price Index, UK Retail Price Index, UK Producer Price Index; at 5:00 PM: South Africa Consumer Price Index; at 7:00 PM: Eurozone Industrial Production, Eurozone Trade Balance; at 9:00 PM: US MBA Mortgage Applications Index; at 10:15 PM: Canadahousing starts, at 10:30 PM the US NY Fed Manufacturing Index and US retail sales, as well as Canadian wholesale sales; at 11:00 PM remarks by ECB President Lagarde and Canadian existing home sales; at 11:15 PM US industrial production; and at 3:00 AM the US 20-year Treasury auction.We will closely monitor the upside potential of the pound, which has become the strongest currency.

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?