Markets are likely to keep a close eye on the direction of the GBP/USD pair, which has been fluctuating following the U.S. CPI release

Markets are likely to keep a close eye on the direction of the GBP/USD pair, which has been fluctuating following the U.S. CPI release

11.05.2023

In yesterday’s U.S. currency trading, the dollar saw a seesaw movement against the pound following the release of the U.S. April Consumer Price Index, which showed the core index rising 5.5% year-over-year. The GBP/USD pair surged approximately 70 pips from 1.2604 to 1.2679 before immediately giving up all of those gains.During today’s Asian session, the pair is trading around 1.2602, hovering above the 20-period moving average on the hourly chart. On the weekly chart, GBP/USD has some room to fall before reaching the 200-period moving average, so we will be watching to see if it rebounds again.

European currencies saw the euro continue to fall against the yen.The EUR/JPY pair fell by approximately 160 pips from 148.669 to 147.041. The 20-period moving average (MA) on the 4-hour chart acted as a resistance level. Technically speaking, the EUR/JPY has already broken below the 20-period MA on the daily chart, and the daily RSI has pulled back after touching 70. Therefore, we will be closely monitoring the direction of the euro against the yen during European trading hours to see if it continues to weaken.

Today’s schedule includes Turkey’s current account balance at 4:00 PM, the Bank of England’s (BOE) interest rate decision and statement at 8:00 PM, the BOE’s Quarterly Monetary Policy Report, South Africa’s manufacturing output at 8:00 PM, remarks by BOE Governor Bailey at 8:30 PM, U.S. initial jobless claims and the U.S. Producer Price Index at 9:30 PM, and remarks by Kashkari, President of the Minneapolis Fed, at 9:45 PM:Minneapolis Fed President Kashkari, at 11:30 PM: US weekly natural gas inventories and remarks by Fed Governor Waller, and at 2:00 AM: US 30-year Treasury auction. We will be closely monitoring the direction of the GBP/USD pair, which has been fluctuating following the US CPI release.

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