Attention on the pound’s upside potential as PMI hits high levels

Attention on the pound’s upside potential as PMI hits high levels

22.02.2023

In yesterday’s U.S. currency trading, the U.S. dollar rose against the euro after the U.S. February Composite PMI, released yesterday, came in at 50.2—significantly exceeding the market forecast of 47.4 and surpassing the benchmark level of 50.The EUR/USD pair fell from 1.0696 to 1.0637, breaking below the upper boundary of the 4-hour downtrend line. Technically, the EUR/USD is declining with its upside capped by the 4-hour 20-MA, so we should remain cautious of further declines during U.S. trading hours.

European currencies rose, with the pound gaining against the Australian dollar following the release of improved PMI figures yesterday. GBP/AUD climbed approximately 340 pips from 1.7397 to 1.7740. During today’s Asian trading session, the pair continues to test the upside. As GBP/AUD is currently in a strong uptrend along the 10-period moving average on the hourly chart, we will monitor the price while keeping an eye on RSI divergence.

Today, at 4:00 p.m. CET, Germany’s Consumer Price Index, Turkey’s Economic Sentiment Index, and Capacity Utilization Rate will be released; at 6:00 p.m. CET, Germany’s IFO Business Climate Index; at 9:00 p.m. CET, the U.S. MBA Mortgage Applications Index; at 3:00 a.m. EST, the U.S. 5-year Treasury auction;at 28:00, the release of the U.S. FOMC minutes, and at 7:30 the following day, remarks by U.S. Federal Reserve Bank of New York President Williams. We will be watching for upside momentum in the pound following the strong PMI reading.

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?