All eyes are on whether the pound can recover after its sharp decline against the yen

All eyes are on whether the pound can recover after its sharp decline against the yen

01.03.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.0855 to 1.0795, breaking below the 200-period simple moving average (SMA) on the hourly chart. Technically, the EUR/USD pair is trading just below the 200-period SMA on the daily chart, showing a lack of direction, while the daily RSI is stagnating around the 50 level. Therefore, we will be watching closely to see if the U.S. dollar gains momentum during European trading hours.

Among European currencies, the pound fell sharply against the yen. The GBP/JPY pair dropped from 190.778 to 189.042, breaking below the 75-period moving average on the 4-hour chart. Although a slight rebound has been observed during today’s Asian trading session, the 20-period moving average on the 4-hour chart is acting as resistance, so we should watch for the pound’s upside potential during U.S. trading hours.

Today’s economic indicators include Japan’s employment statistics at 8:30, Malaysia’s Manufacturing PMI at 9:30, China’s Manufacturing PMI at 10:30, Indonesia’s Consumer Price Index at 11:00, India’s Manufacturing PMI at 14:00, the UK’s Nationwide House Price Index and Turkey’s Manufacturing PMI at 16:00, and Switzerland’s Retail Sales at 16:30.at 7:00 PM, the Eurozone CPI; and at 10:30 PM, remarks by Barkin, President of the Richmond Fed. We will be watching for signs of a recovery in the pound, which has fallen sharply against the yen.