Will we see a rebound? Keep a close eye on the pound-dollar pair’s resilience.
23.04.2024
- U.S. 2-Year Treasury Auction
- Germany: Manufacturing/Services PMI
In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen after Canada’s March industrial producer prices, released yesterday, rose by 0.1 percentage points to 0.8% from 0.7% the previous month. The CAD/JPY pair rose from 112.232 to 113.104, forming an uptrend along the 20-period moving average on the hourly chart.On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands has been confirmed, and on the daily chart, the RSI remains just below 70 with some room to spare, so we should keep an eye on the potential for further movement during U.S. trading hours.
Among European currencies, the pound weakened during U.S. trading hours. The GBP/USD pair fell for the third consecutive day.It fell from 1.2391 to 1.2298. On the 4-hour chart, the pair is trading below the 20-day moving average (MA) and trending lower, while on the daily chart, the 10-day MA is acting as resistance. Additionally, the daily RSI has fallen below 70 to 27. We will closely monitor the market to see if the pound shows any resilience during European trading hours.
Today’s economic indicators include the French Manufacturing/Services PMI at 4:15 PM, the German Manufacturing/Services PMI at 4:30 PM, the Eurozone Manufacturing/Services PMI at 5:00 PM, the UK Manufacturing/Services PMI at 5:30 PM, remarks by MPC member Pill at 8:15 PM, and at 9:30 PM, remarks byRemarks by German Bundesbank President Nagel, at 10:45 PM US Manufacturing/Services PMI, at 11:00 PM US New Home Sales and the Richmond Fed Manufacturing Index, at 2:00 AM US 2-Year Treasury Auction, and at 7:45 AM the following day NZ Trade Balance. We will be closely monitoring the resilience of the GBP/USD pair to see if a rebound is in store.
Author: Keisuke Sakurai
