Attention may turn to the pound’s upside following the agreement on trade rules for Northern Ireland
28.02.2023
- Chicago Purchasing Managers' Index
- U.S. S&P Case-Shiller Home Price Index
Yesterday, the U.S. dollar weakened against the pound, with GBP/USD rising by approximately 130 pips from 1.1922 to 1.2066. GBP/USD has been rising after breaking above the 200-period SMA on the hourly chart and has also broken well above the 20-period MA on the 4-hour chart. However, as the pair is currently trading just below the 75-period MA on the 4-hour chart, this level could act as resistance, so we need to closely monitor the direction of the trend.
Among European currencies, the euro weakened against the pound, with the EUR/GBP pair falling from 0.8835 to 0.8788. The pound rose across the board yesterday on positive sentiment following an agreement between the UK, the EU, and Northern Ireland on a solution to the friction over trade rules. Since the EUR/GBP pair is showing a triple top pattern on the daily chart, we should remain cautious about a further decline just in case.
Today’s schedule includes Turkey’s Q4 GDP at 4:00 PM, France’s CPI and Q4 GDP at 4:45 PM, Switzerland’s KOF Leading Index at 5:00 PM, remarks by Bank of England Deputy Governor Kanliff at 7:15 PM, remarks by MPC member Pill at 9:15 PM, and remarks by MPC member Mann at 9:30 PM.MPC member Mann’s remarks at 9:30 PM, Canada’s GDP and U.S. wholesale inventories at 10:30 PM, the U.S. S&P Case-Shiller Home Price Index at 11:00 PM, the U.S. Chicago PMI at 11:45 PM, and the U.S. Consumer Confidence Index at midnight. We will be watching the upside potential of the pound, which has been bought on the back of the agreement on trade rules for Northern Ireland.
Author: Keisuke Sakurai
