All eyes are on whether the pound, which is facing resistance at higher levels, will fall against various currencies
26.09.2023
- Richmond Fed Manufacturing Index
- Number of Building Permits in the U.S.
In yesterday’s U.S. currency markets, the U.S. dollar rose as U.S. Treasury yields increased. The GBP/USD pair fell from 1.2249 to 1.2193, hitting a new six-month low. Furthermore, the GBP/USD has broken below the recent weekly low of 1.12307 with a bearish candle, and on the monthly chart, it has rebounded after hitting resistance at the 75-day moving average; therefore, we should remain cautious about the possibility of a continued decline.
Like the euro, European currencies faced resistance, causing the GBP/JPY pair to trade in a range between 181.396 and 181.942. The pair moved within a narrow 50-pip range, trading in a trendless manner centered around the 20-period moving average on the hourly chart. Furthermore, the GBP/JPY has shown no significant movement during today’s Asian session, and the direction remains unclear.From a technical perspective, since the pair is trading below the 4-hour 20-MA, we should remain vigilant for a potential breakdown in the pound during European trading hours.
Today, at 3:00 PM, Sweden’s Producer Price Index; at 3:30 PM, Hungary’s Current Account Balance; at 4:00 PM, South Africa’s Leading Indicator; at 5:30 PM, Hong Kong’s Trade Balance;at 9:00 PM, Brazil’s Consumer Price Index, Hungary’s Policy Rate, and U.S. Building Permits; at 10:00 PM, the U.S. S&P/Case-Shiller Home Price Index; at 11:00 PM, the U.S. Consumer Confidence Index and the U.S. Richmond Fed Manufacturing Index; and at 2:00 AM, a U.S. 2-year Treasury auction.We will be watching closely to see if the pound, which is facing resistance on the upside, will decline against various currencies.
Author: Keisuke Sakurai
