Should we keep an eye on the pound, which has been rising in value?

Should we keep an eye on the pound, which has been rising in value?

06.03.2024

In the U.S. currency market yesterday, the dollar fell during U.S. trading hours following the release of U.S. January manufacturing orders, which dropped sharply from 0.2% the previous month to -3.6%. The USD/JPY pair fell from 150.545 to 149.698. Since the start of this week, dark clouds have been gathering over the prospect of breaking through the mid-150 yen level.From a technical perspective, USD/JPY is trading just below the 20-day moving average on the daily chart, so we will be watching closely to see if comments from key figures during U.S. trading hours cause the price to move.

Despite the UK’s February services PMI falling to 53.8 from 54.3 the previous month, the pound rose against the US dollar. GBP/USD climbed to 1.2670–1.2734, with the rise tracking the 10-period moving average on the 4-hour chart.On the daily chart, GBP/USD is finding support at the 75-day moving average, and as the lows are rising, we should watch for an upward move during European trading hours.

Today’s schedule includes South Korea’s Consumer Price Index at 8:00, Australia’s Real GDP at 9:30, Germany’s Trade Balance at 16:00, the UK’s Construction PMI at 18:30, Eurozone Retail Sales at 19:00, the U.S. MBA Mortgage Applications Index and Brazil’s Industrial Production at 21:00, and the U.S. ADP Employment Report at 22:15,at 10:30 PM, Canada’s labor productivity; at 11:45 PM, the Bank of Canada’s policy rate announcement and statement; at 12:00 AM, Canada’s Ivey PMI, U.S. wholesale inventories, U.S. JOLTS job openings, and Fed Chair Powell’s congressional testimony; and at 4:00 AM, the U.S. Federal Reserve Beige Book. We will be closely monitoring the movements of the pound, which has been gaining ground.