Will the weakening pound recover? All eyes are on price movements during European trading hours.

Will the weakening pound recover? All eyes are on price movements during European trading hours.

09.09.2024

Last weekend, the Canadian dollar fell against the yen following the release of Canada’s August employment statistics on the 6th, which showed the unemployment rate worsening by 0.2 percentage points from 6.4% in the previous month to 6.6%. The CAD/JPY pair dropped from 106.746 to 104.677. The hourly RSI fell to 28.On the daily chart, there have been four consecutive bearish candles, and on the weekly chart, the price has pulled back after touching the 75-day moving average, so we should watch for continued weakness in the Canadian dollar.

Among European currencies, the pound was the weakest. The GBP/JPY pair fell from 189.507 to 186.423. The price dropped from the +2σ to the -2σ levels on the hourly Bollinger Bands. During Asian trading hours at the start of the week, the pair rebounded slightly, recovering to around 187.788. We will carefully monitor the situation to see if the pound will weaken again during European trading hours.

Today’s economic indicators include Japan’s balance of payments and second-quarter real GDP at 8:50 a.m., China’s producer price index and consumer price index at 10:30 a.m., Taiwan’s trade balance at 5:00 p.m.,at 9:00 PM: Mexico’s Consumer Price Index; at 11:00 PM: U.S. Wholesale Inventories; at 4:00 AM: U.S. Consumer Credit; and at 7:45 AM the following day: New Zealand’s Q2 Manufacturing Sales. We will be watching price movements during European trading hours to see if the weakening pound can recover.

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