Despite Strong UK Industrial Production, Concerns Over Further Declines in the Pound
13.10.2023
- Harker (U.S.): Remarks by the President of the Federal Reserve Bank of Philadelphia
- University of Michigan Consumer Sentiment Index
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 rate of 3.7%—unchanged from the previous month—while the year-over-year core index fell to 4.1% from 4.3% the previous month.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 currency intervention, and volatility has stayed within acceptable ranges.It will be worth watching whether the U.S. dollar continues to rise during U.S. trading hours.
European currencies saw the pound weaken against the yen, despite yesterday’s release of UK August industrial production figures, which showed a year-over-year improvement to 1.3% from the previous month’s 0.4%. The GBP/JPY pair 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, at 15:00, Sweden’s Consumer Price Index; at 15:30, Switzerland’s Producer Price Index and Hungary’s Industrial Production; at 15:45, France’sCPI, at 17:00 the Philippine CPI and remarks by Bank of England Governor Bailey, at 18:00 Eurozone industrial production, at 21:30 U.S. import and export price indices, at 22:00 remarks by ECB President Lagarde and U.S. Federal Reserve Bank of Philadelphia President Harker:remarks by Philadelphia Fed President Harker; at 23:00, the U.S. University of Michigan Consumer Sentiment Index; and at 25:30, remarks by UK BOE Deputy Governor Kanrif. Even with strong UK industrial production data, the pound fell, so investors should remain cautious about further downside potential.
Author: Keisuke Sakurai
