Market Watchers Keep an Eye on the Pound as UK CPI Remains at 6.7%, Unchanged from the Previous Month
19.10.2023
- Remarks by U.S. Federal Reserve Chair Powell
- U.S. Initial Unemployment Insurance Claims
In the U.S. currency market yesterday, the U.S. dollar rose slightly against the yen despite the fact that U.S. housing starts for September—released yesterday—declined to 1.473 million from 1.543 million the previous month. The USD/JPY pair rose slightly from 149.486 to 149.934.The pair showed an upward move, supported on the downside by the 20-period moving average (MA) on the 4-hour chart. Technically, since the daily RSI for USD/JPY is trending upward and has broken above the -3σ line, we should keep an 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, which was announced yesterday and remained unchanged from the previous month at 6.7% year-over-year. The GBP/JPY pair fell from 182.800 to 181.658.The decline followed the -2σ line on the hourly RSI. We will need to monitor currency strength and weakness later today to see if the pound continues to weaken against the yen.
Today, at 15:45, France’s business sentiment index; at 17:00, the Eurozone’s current account balance;at 17:30, Hong Kong’s employment statistics; at 21:30, U.S. initial jobless claims, Canadian industrial product prices, and the U.S. Philadelphia Fed Business Outlook Index; at 22:00, remarks by Federal Reserve Governor Jefferson;at 11:00 PM, U.S. existing home sales and the U.S. Leading Economic Index; at 1:00 AM, remarks by Fed Chair Powell; at 2:00 AM, a U.S. 5-year Treasury auction; and at 2:30 AM, remarks by Fed Vice Chair Barr.We want to carefully assess the direction of the pound, as the UK CPI came in at 6.7%, unchanged from the previous month.
Author: Keisuke Sakurai
