Concerns Over Further Declines in the Pound Despite Strong UK Industrial Production

Concerns Over Further Declines in the Pound Despite Strong UK Industrial Production

13.10.2023

In the U.S. currency market yesterday, the U.S. dollar rose following the release of the September Consumer Price Index, which showed a year-over-year increase of 3.7%—unchanged from the previous month—while the year-over-year core index fell from 4.3% to 4.1%.The USD/JPY pair rose by just under 90 pips, from 148.955 to 149.828, approaching the key 150 yen level. However, price movements remained limited due to concerns over potential currency intervention, and volatility has stayed within acceptable ranges. We will be watching to see if the US dollar continues to rise during US trading hours.

Despite the improvement in UK industrial production for August—released yesterday—which rose to 1.3% year-on-year from 0.4% the previous month, the pound weakened against the yen. GBP/JPY fell from this month’s high of 183.814 to 182.323.This marked the first decline in three days. However, GBP/JPY remains above the 20-day moving average on the daily chart and has not completely lost its upward momentum, so we will be closely monitoring price movements during European trading hours.

Today’s schedule includes the Swedish Consumer Price Index at 3:00 PM, the Swiss Producer Price Index and Hungarian Industrial Production at 3:30 PM, the French Consumer Price Index at 3:45 PM, the Philippine Consumer Price Index and remarks by Bank of England Governor Bailey at 5:00 PM, and the EurozoneIndustrial Production, at 9:30 PM the U.S. Import/Export Price Index, at 10:00 PM remarks by ECB President Lagarde and U.S. Federal Reserve Bank of Philadelphia President Harker, at 11:00 PM the University of Michigan Consumer Sentiment Index, and at 1:30 AM remarks by BOE Deputy Governor Cunliffe.Despite strong UK industrial production data, the pound fell; we should remain cautious about further downside potential.

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