With the pound reversing course and falling from its recent highs, investors are likely keeping a close eye on its direction

With the pound reversing course and falling from its recent highs, investors are likely keeping a close eye on its direction

05.04.2023

In the U.S. currency market yesterday, the U.S. dollar fell against the euro as a series of economic indicators came in below market expectations. The EUR/USD pair rose from 1.0882 to 1.0973. It has broken through last month’s high and is climbing at a pace that threatens to reach this year’s high.Although the 4-hour RSI for EUR/USD is showing signs of divergence, the daily RSI still has room to run, so we will need to watch the situation carefully to see if the upward trend continues for a while.

European currencies saw the pound, which had been rising against the yen, reverse course after Bank of England MPC member Tenreyro stated, “Interest rates have reached high levels, and a more rapid reversal will be necessary.”GBP/JPY rose from 164.173 to 166.406 before reversing course. It fell below the 165-yen level and dipped below the 20-period moving average on the hourly chart. As GBP/JPY has reached the upper boundary of its 4-hour uptrend channel, a pullback is expected. Traders should watch for downside potential in the pound during European trading hours.

Today’s schedule includes German manufacturing orders at 3:00 PM, French industrial production and the French manufacturing production index at 3:45 PM, the French services PMI at 4:50 PM, the German services PMI at 4:55 PM, the Eurozone services PMI at 5:00 PM, the UK services PMI at 5:30 PM, and at 6:15 PM, a statement byremarks by MPC member Tenreyro, at 8:00 PM the U.S. MBA Mortgage Applications Index, at 9:15 PM the U.S. ADP Employment Report, at 9:30 PM Canada’s trade balance and the U.S. trade balance, at 10:45 PM the U.S. Services PMI, at 11:00 PM the U.S. ISM Non-Manufacturing PMI, and at 11:30 PM U.S. weekly crude oil inventories.We will be closely watching the direction of the pound, which has reversed course and is falling from its recent highs.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   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

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   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?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran