Market participants may be wary of the pound’s direction following comments on inflation risks
09.02.2024
- Thailand's Foreign Exchange Reserves
- Mexico: Industrial Production
In U.S. trading yesterday, the U.S. dollar strengthened as the number of new U.S. unemployment insurance claims, released yesterday, fell to 218,000 from 224,000 the previous week. The USD/JPY pair rose from 147.929 to 149.479.A band walk along the +2σ line of the hourly Bollinger Bands was observed. As USD/JPY has been consolidating at lower levels during today’s Asian session, we will be closely monitoring whether there are any changes in currency strength during the European session.
In European currency markets, the pound rose against the yen after a member of the Bank of England’s Monetary Policy Committee (MPC) stated yesterday that “the labor market remains tight, and we recognize the risk of persistent inflation.” The GBP/JPY pair rose by approximately 1.6 yen, from 186.867 to 188.498. The rally has brought the pair close to this year’s high. We will need to keep a close eye on price movements during European trading hours to see if this upward trend continues.
Today’s economic indicators include Norway’s Consumer Price Index and Germany’s Consumer Price Index at 4:00 PM, Turkey’s Industrial Production at 4:00 PM, Hungary’s Consumer Price Index and Thailand’s Foreign Exchange Reserves at 4:30 PM,at 19:30, remarks by Nagel, President of the German Bundesbank; at 21:00, Mexico’s industrial production; at 22:30, Canada’s employment report; and at 27:30, remarks by Logan, President of the Dallas Federal Reserve. We will closely monitor the direction of the pound, which has risen on comments regarding inflation risks.
Author: Keisuke Sakurai
