Will the market keep a close eye on the pound’s ability to recover from its sharp decline?
19.07.2024
- UK GfK Consumer Confidence Survey
- Williams (U.S.): Remarks by the President of the New York Fed
In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after the U.S. June Leading Economic Index, released yesterday, improved to -0.2% from -0.5% the previous month. USD/JPY rose from 155.369 to 157.408, recovering from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, USD/JPY is positioned just below the 20-period moving average (MA), while on the daily chart, it has rebounded from around the 75-period MA. We will closely monitor whether the US dollar continues to rebound against the yen.
Among European currencies, the pound was the weakest. The GBP/USD pair fell from 1.3012 to 1.2936. The decline followed the 10-period moving average on the hourly chart. On the 4-hour chart, the pullback from the +3σ Bollinger Band continues, while on the daily chart, the RSI has fallen from 73. We will be watching closely to see if the pound continues to weaken against the U.S. dollar.
Today’s economic indicators include the UK GfK Consumer Confidence Survey at 8:01, Japan’s National Consumer Price Index at 8:30, remarks by Fed Governor Bowman at 8:45, UK Retail Sales and Germany’s Producer Price Index at 15:00, Canada’s Retail Sales, Industrial Production, and Raw Materials Price Index at 21:30, and remarks by Williams at 23:40:Remarks by NY Fed President Williams, and at 2:00 AM, remarks by US Atlanta Fed President Bostic. I want to carefully assess the pound’s potential for recovery following its sharp decline.
Author: Keisuke Sakurai
