Should We Keep an Eye on the Pound’s Upside Following the Agreement on Northern Ireland’s Trade Rules?
28.02.2023
- Chicago Purchasing Managers' Association Business Activity Index
- U.S. S&P Case-Shiller Home Price Index
Yesterday, the U.S. dollar weakened against the pound, and the GBP/USD pair rose 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 broken well above the 20-period MA on the 4-hour chart. However, as it is currently trading just below the 75-period MA on the 4-hour chart, that level could act as resistance, so we should carefully 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 to resolve friction over trade rules. Since the EUR/GBP pair is showing a triple top pattern on the daily chart, it is prudent to remain cautious about the possibility of further declines.
Today’s schedule includes Turkey’s Q4 GDP at 4:00 p.m., France’s Consumer Price Index and Q4 GDP at 4:45 p.m., Switzerland’s KOF Leading Index at 5:00 p.m., and at 7:15 p.m., the UK’sRemarks by BOE Deputy Governor Kanlif at 9:15 p.m., remarks by MPC Member Pill at 9:15 p.m., remarks by MPC Member Mann at 9:30 p.m., Canada’s GDP and U.S. wholesale inventories at 10:30 p.m.,at 11:00 PM: U.S. S&P Case-Shiller Home Price Index; at 11:45 PM: U.S. Chicago Purchasing Managers’ Index; and at 12:00 AM: U.S. Consumer Confidence Index. We’ll be watching the upside potential for the pound, which has been bought on the back of the agreement on trade rules for Northern Ireland.
Author: Keisuke Sakurai
