Caution over the direction of the pound, which has risen on comments about inflation risks

Caution over the direction of the pound, which has risen on comments about inflation risks

09.02.2024

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 watching closely to see if there are any changes in currency strength during the European session.

In the European currency markets, the pound rose against the yen yesterday after a member of the Bank of England’s Monetary Policy Committee (MPC) stated 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 rise put the pair on track to approach 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 7:30 PM, remarks by German Bundesbank President Nagel; at 9:00 PM, Mexico’s industrial production; at 10:30 PM, Canada’s employment report; and at 3:30 AM, remarks by Logan, President of the Dallas Fed. We will closely monitor the direction of the pound, which has risen on comments regarding inflation risks.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   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. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   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. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran