All Eyes on Whether the Pound, Which Is Struggling to Gain Ground, Will Fall Against Various Currencies
26.09.2023
- Richmond Fed Manufacturing Index (U.S.)
- Number of Building Permits in the U.S.
In the U.S. currency market the previous day, 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 pair has closed below its recent weekly low of 1.12307, and on the monthly chart, it has rebounded after hitting resistance at the 75-day moving average; therefore, traders should remain cautious about the possibility of a continued decline.
Among European currencies, the pound faced resistance similar to the euro, and the GBP/JPY pair traded in a range between 181.396 and 181.942.GBP/JPY traded within a narrow 50-pip range, remaining trendless throughout the session with price action centered around the 20-period moving average (MA) on the hourly chart. Furthermore, 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 20-period MA on the 4-hour chart, traders should be wary of a potential decline in the pound during European trading hours.
Today’s schedule includes the Swedish Producer Price Index at 15:00, Hungary’s Current Account Balance at 15:30, South Africa’s Leading Index at 16:00, Hong Kong’s Trade Balance at 17:30, Brazil’s Consumer Price Index and Hungary’s Policy Rate at 21:00,U.S. Building Permits, at 22:00 the U.S. S&P/Case-Shiller Home Price Index, at 23:00 the U.S. Consumer Confidence Index and the U.S. Richmond Fed Manufacturing Index, and at 26:00 the 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
