Should we keep a close eye on the direction of the pound, which is facing resistance?

Should we keep a close eye on the direction of the pound, which is facing resistance?

12.09.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose immediately following the release of the U.S. August Consumer Price Index (CPI), as the core index rose by 0.1 percentage points month-over-month, from 0.2% to 0.3%. The USD/JPY pair rebounded from 140.707 to 142.545.During today’s Asian trading session, it extended further to 142.960. However, since the pair continues to trade below the 10-day moving average on the daily chart, we should watch to see if the US dollar’s rally will continue.

Despite the improvement in UK industrial production for July—which was released yesterday and showed a year-on-year decline of 1.2% compared to the previous month’s 1.4% drop—the pound fell against the yen. The GBP/JPY pair fell from 186.370 to 183.713.The pair was capped by the 20-period moving average on the hourly chart. On the daily chart, a band walk along the -2σ line of the Bollinger Bands has been confirmed, so we should remain cautious of a further decline in the pound during European trading hours.

Today, the UK RICS House Price Index is scheduled for 8:01, followed by Japan’s Business Sentiment Index (BSI) and Domestic Corporate Goods Prices at 8:50, and Japan’s Foreign and Domestic Securities Investment data at 15:00. At 16:00, Turkey’s Current Account Balance will be released,at 9:00 PM: Brazil’s Retail Sales and India’s Consumer Price Index; at 9:15 PM: the ECB’s policy rate decision and statement; at 9:30 PM: Canada’s Housing Starts, the U.S. Producer Price Index, and U.S. Initial Jobless Claims; at 9:45 PM: remarks by ECB President Lagarde; and at 11:25 PM: remarks by SNB Governor Jordan.We want to carefully assess the direction of the pound, which is facing resistance on the upside.

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