Markets may be watching the pound’s direction as the unemployment rate rose from 3.9% to 4.0%

Markets may be watching the pound’s direction as the unemployment rate rose from 3.9% to 4.0%

17.05.2023

In the previous day’s U.S. currency markets, the U.S. dollar emerged as the strongest currency during U.S. trading hours after Cleveland Fed President Mester stated that “interest rates are not at sufficiently restrictive levels,” and other officials made a series of remarks dampening expectations for rate cuts. The EUR/USD pair fell by approximately 50 pips from 1.0904 to 1.0854. The 75-period moving average on the hourly chart acted as resistance, causing the pair to pull back.With yesterday’s decline, the EUR/USD pair has continued its downward trend along the 4-hour 20-MA, so we should remain cautious regarding its direction during European trading hours.

Among European currencies, the pound rose against the yen following yesterday’s release of the UK’s April employment statistics, which showed the unemployment rate rising by 0.1 percentage points from 3.9% to 4.0%. The GBP/JPY pair climbed approximately 150 pips from 169.379 to 170.834, breaking slightly above the upper boundary of the descending parallel channel on the 4-hour chart.As prices are testing the upside during today’s Asian session, it will be worth watching whether they extend their gains again during European trading hours.

Today’s schedule includes the Eurozone Consumer Price Index at 6:00 p.m. CET, remarks by Bank of England Governor Bailey at 6:50 p.m. CET, South African retail sales at 8:00 p.m. CET,the U.S. MBA Mortgage Applications Index at 8:30 PM, and the Turkish Housing Price Index at 8:30 PM; during U.S. trading hours, Canadian International Securities Turnover, U.S. Housing Starts, and U.S. Building Permits are scheduled for 9:30 PM, U.S. Weekly Crude Oil Inventories at 11:30 PM, a U.S. 20-year Treasury auction at 2:00 AM, and New Zealand’s Q1 Producer Price Index at 7:45 AM the following day.We will be closely monitoring the direction of the British pound, as the unemployment rate rose from 3.9% to 4.0%.

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