Markets are watching the direction of the pound as UK CPI came in at 6.7%, unchanged from the previous month

Markets are watching the direction of the pound as UK CPI came in at 6.7%, unchanged from the previous month

19.10.2023

In yesterday’s U.S. currency trading, the U.S. dollar rose slightly against the yen despite the fact that U.S. housing starts for September, released yesterday, fell to 1.473 million from 1.543 million the previous month. The USD/JPY pair rose slightly from 149.486 to 149.934, showing an upward move supported by the 20-period moving average (MA) on the 4-hour chart.Technically, since the USD/JPY daily RSI is trending upward and has broken above the -3σ line, we should keep a close eye on the dollar’s price action during U.S. trading hours.

European currencies saw the British pound fall against the yen immediately after the release of the UK’s September Consumer Price Index yesterday, which remained unchanged from the previous month at 6.7% year-on-year. The GBP/JPY pair fell from 182.800 to 181.658, tracking the -2σ line on the hourly RSI. We will need to monitor currency strength later today to see if the pound continues to weaken against the yen.

Today, at 3:45 PM, France’s Business Sentiment Index; at 5:00 PM, the Eurozone’s Current Account Balance; at 5:30 PM, Hong Kong’s Employment Statistics; at 9:30 PM, U.S. Initial Jobless Claims, Canada’s Industrial Product Prices, and the U.S. Philadelphia Fed Business Outlook Index;22:00: Remarks by Fed Governor Jefferson; 23:00: U.S. Existing Home Sales and Leading Economic Index; 25:00: Remarks by Fed Chair Powell; 26:00: U.S. 5-Year Treasury Auction; and 26:30: Remarks by Fed Vice Chair Barr.We will carefully assess the direction of the pound following the UK CPI, which came in at 6.7%, unchanged from the previous month.

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