Market participants are likely to keep a close eye on the upside potential of the pound, which has rebounded against the U.S. dollar

Market participants are likely to keep a close eye on the upside potential of the pound, which has rebounded against the U.S. dollar

12.12.2023

In yesterday’s U.S. currency trading, the U.S. dollar traded sideways against the euro ahead of today’s U.S. CPI release. The EUR/USD pair traded within a very narrow range between 1.10741 and 1.0778, continuing its directionless trend.Technically, the EUR/USD pair is positioned just below the 200-period simple moving average (SMA) on the 4-hour chart, and the 200-period exponential moving average (EMA) is acting as support on the daily chart, so we will be watching price movements closely during U.S. trading hours today.

European currencies saw the pound rise slightly against the U.S. dollar after the UK’s December Rightmove house prices, released yesterday, improved year-on-year from a 1.3% decline the previous month to a 1.1% decline. The GBP/USD pair rebounded by about 60 pips from 1.2522 to 1.2588.It has recovered from this month’s low. However, on the daily chart, the RSI remains in a downtrend after falling from above 70, so caution is warranted ahead of today’s economic data releases during U.S. trading hours.

Today’s economic indicators include the UK Employment Report at 4:00 PM, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index at 7:00 PM, South African Manufacturing Production and the US NFIB Small Business Optimism Index at 8:00 PM, Mexican Industrial Production at 9:00 PM, and the IndianIndustrial Production, and India’s Consumer Price Index; at 10:30 PM, the US Consumer Price Index; at 10:55 PM, the US Redbook Large Retailer Sales; at 3:00 AM, the US 30-Year Treasury Auction; and at 4:00 AM, the US Budget Balance. We will closely monitor the upside potential for the pound, which has rebounded against the US dollar.

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