All Eyes on Whether the Weakened Pound Will Rebound

All Eyes on Whether the Weakened Pound Will Rebound

18.04.2024

In U.S. currency trading yesterday, the U.S. dollar fell against the yen despite the U.S. MBA Mortgage Applications Index, released yesterday, rebounding to 3.3% from 0.1% the previous week. The USD/JPY pair fell from 154.734 to 154.157.During today’s Asian trading session, the pair has continued to decline, breaking below the 154-yen level to reach 153.950. On the 4-hour chart, the pair is trading just below the 20-period moving average (MA); if it breaks below the 20-MA, there will be no support until the low 153-yen range, so traders should remain vigilant for any U.S. dollar price movements triggered by comments from key officials.

Among European currencies, the pound fell during U.S. trading hours. The GBP/JPY pair dropped from 192.838 to 191.681, briefly dipping below the 200-period SMA on the hourly chart. On the 4-hour chart, the 75-period MA is acting as a support level, while on the daily chart, the pair is trading above the 10-period MA.Since candlesticks on the daily chart frequently feature upper shadows, we will be watching closely to see if the pound gains momentum during European trading hours.

Today’s economic indicators include Japan’s foreign and domestic securities investment at 8:50, Australia’s employment report at 10:30, Japan’s tertiary industry activity index at 13:30, Turkey’s housing prices at 16:00, the EU’s current account balance at 17:00,at 5:30 PM: Hong Kong Employment Statistics; at 6:00 PM: Eurozone Construction Output; at 9:30 PM: U.S. Initial Jobless Claims and the U.S. Philadelphia Fed Business Outlook Index;at 22:05, remarks by Fed Governor Bowman; at 23:00, the U.S. Leading Economic Index and U.S. Existing Home Sales; and at 24:00, remarks by Bostic, President of the Atlanta Fed. We will carefully assess the direction of the market to see if the pound, which has fallen, will recover.