Concerns over further downside potential for the pound, which has weakened against the U.S. dollar

Concerns over further downside potential for the pound, which has weakened against the U.S. dollar

13.05.2024

Last weekend, the U.S. dollar rose against the euro as the Dollar Index edged up to 105.3.The EUR/USD pair fell from 1.0789 to 1.0760. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. Although the pair remained above the 20-period MA on the 4-hour chart, it failed to break through resistance and ended up pulling back. On the daily chart, the price fell as the 200-period simple moving average (SMA) acted as resistance, so traders should watch for a potential decline during European trading hours.

European currencies fell as the British pound weakened against the U.S. dollar following the release of UK industrial production data for March on the 10th, which showed a year-on-year decline of 0.5%, down from 1.4% the previous month. The GBP/USD pair fell from 1.2541 to 1.2502, briefly dipping below the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the 200-period SMA is acting as resistance, causing the price to stall, and the daily chart is showing similar price action. We should remain vigilant to see if the pound continues to weaken against the US dollar.

Today’s schedule includes Japan’s money supply at 8:50, Australia’s NAB Business Confidence Index at 10:30, Sweden’s expected price trends at 13:30, the Czech Republic’s Consumer Price Index and Switzerland’s Consumer Confidence Index at 16:00, and India’sCPI, at 9:30 PM the Canadian Building Permits, at 10:00 PM remarks by Jefferson, Vice Chair of the Fed, and remarks by Mester, President of the Cleveland Fed, at 12:30 AM the U.S. 3-month Treasury bill auction, and at 1:45 AM remarks by Jordan, Governor of the SNB. We should remain highly vigilant regarding the downside potential for the pound, which has weakened against the U.S. dollar.

Past Market Reports

1. 17.04.2026New

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

2. 16.04.2026New

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

3. 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

4. 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?

5. 13.04.2026New

   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

6. 10.04.2026

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

7. 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?

8. 08.04.2026

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

9. 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

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed