Investors should watch the movement of the pound-yen exchange rate, which fluctuated by nearly 6 yen in a single day following the results of the LDP leadership election.

Investors should watch the movement of the GBP/JPY exchange rate, which fluctuated by nearly 6 yen in a single day following the results of the LDP leadership election.

30.09.2024

Last weekend, the U.S. dollar rose slightly against the euro after the University of Michigan’s September Consumer Sentiment Index, released on the 27th, rebounded to 70.1 from 69.0 the previous month, exceeding market expectations.The EUR/USD pair fell from 1.1202 to 1.1125. Price action crossed the 20-period moving average on the hourly chart. On the 4-hour chart, the pair rebounded after touching the +2σ line of the Bollinger Bands.

Among European currencies, the pound fell against the yen. While the yen strengthened across the board following the results of the LDP leadership election, the GBP/JPY pair dropped by just under 6 yen, from 195.960 to 190.021. It plummeted from the +3σ to the -3σ levels on the hourly Bollinger Bands. On the weekly chart, the RSI is trending downward again from 49, so we should remain cautious about the pound’s price movements on the last day of the month.

Today’s economic indicators include Japan’s retail sales and industrial production at 8:50 a.m., New Zealand’s ANZ Business Confidence Index at 9:00 a.m., China’s Manufacturing and Services PMI at 10:30 a.m., Japan’s housing starts at 2:00 p.m., and Germany’s retail sales at 3:00 p.m.,UK Real GDP, 4:00 PM: Switzerland KOF Leading Index, Thailand Current Account Balance, 9:00 PM: Germany Consumer Price Index, South Africa Trade Balance, 10:45 PM: US Chicago PMI, and 2:55 AM: Remarks by Fed Chair Powell. We should pay close attention to the movement of the GBP/JPY pair, which fluctuated by nearly 6 yen in a single day following the results of the LDP leadership election.