Will the GBP/JPY pair, which has weathered the decline, recover during European trading hours, or should we wait and see?
15.07.2024
- China's Second-Quarter GDP
- Switzerland – Producer Import Prices
Last weekend, the U.S. dollar fell against the euro after the University of Michigan Consumer Sentiment Index, released on the 12th, dropped to 66.0 from 68.2 the previous month.The EUR/USD pair rose from 1.0860 to 1.0910. It gained ground with the 20-period moving average (MA) on the hourly chart acting as a support line. Similarly, on the 4-hour chart, the 20-MA is functioning as a support line, and on the daily chart, there have been three consecutive bullish candles.
Among European currencies, the pound strengthened during U.S. trading hours. GBP/JPY remained range-bound while other yen crosses fell, trading within a range of 203.829 to 206.322. On the hourly chart, it is positioned just below the 200-period SMA, and on the 4-hour chart, it is trading just below the 75-period MA.Although the pair is trading below the 10-day moving average on the daily chart, it is barely holding above the 20-day moving average, so it will be worth watching to see if GBP/JPY recovers during European trading hours.
Today’s economic indicators include the UK Rightmove House Price Index at 8:01, China’s Q2 GDP, industrial production, and retail sales at 11:00, Switzerland’s producer import prices at 15:30, and at 18:00, the Eurozone’sIndustrial Production, at 21:30: US NY Fed Manufacturing Index, Canadian Manufacturing Shipments, and Canadian Wholesale Sales, at 25:30: Remarks by Fed Chair Powell, and at 29:35: Remarks by the President of the San Francisco Fed. I intend to watch cautiously to see if GBP/JPY, which has weathered the decline, will recover during European trading hours.
Author: Keisuke Sakurai
