Will the market wait and see how much further the pound can rise against the yen?

Will the market wait and see how much further the pound can rise against the yen?

17.05.2024

In the previous day’s U.S. currency trading, the dollar strengthened during U.S. trading hours after the Boston and Atlanta Fed officials stated, “While we are grateful for the slowdown in inflation in April, we remain vigilant,” suggesting that rate cuts are more likely toward the end of the year rather than in the immediate future. The euro fell against the dollar from 1.0895 to 1.0854.It broke below the 20-period moving average on the hourly chart. On the 4-hour chart, price action is showing a regression from the +2σ Bollinger Band toward the centerline, so we will be watching for the potential for the U.S. dollar to rise during European trading hours.

Among European currencies, the pound rose against the yen. The GBP/JPY pair climbed from 195.038 to 196.912, breaking above the 20-period moving average (MA) on the hourly chart from below. On the 4-hour chart, the 75-period MA is acting as a support level, triggering a rebound, and on the daily chart, the trend along the 10-period MA continues. We will need to carefully assess whether the pound will strengthen further during U.S. trading hours.

Today’s schedule includes South Korea’s employment statistics at 8:00, China’s industrial production at 10:30, China’s retail sales at 11:00, Malaysia’s current account balance at 13:00, France’s employment statistics at 14:30, Switzerland’s industrial production at 15:30, remarks by a member of the Bank of England’s MPC at 17:00, Hong Kong’s real GDP at 17:30,at 6:00 PM: Eurozone Consumer Price Index; at 9:30 PM: Canada Government Bond Turnover; at 11:00 PM: U.S. Leading Economic Index; at 11:15 PM: Remarks by U.S. Federal Reserve Governor Waller; and at 1:15 AM: Remarks by U.S. San Francisco Fed President Daly. I intend to carefully monitor the upside potential of the pound, which has risen against the yen.