Investors Should Keep an Eye on Pound-Yen Fluctuations, Which Moved by Just Under 6 Yen in a Single Day Following the LDP Leadership Election Results

Investors Should Keep an Eye on Pound-Yen Fluctuations, Which Moved by Just Under 6 Yen in a Single Day Following the LDP Leadership Election Results

30.09.2024

In U.S. currency markets 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, with price action straddling 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 Liberal Democratic Party leadership election, the GBP/JPY pair fell 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 showing signs of resuming a downward trend from 49, so we should remain cautious regarding the pound’s price movements on the last trading day of the month.

Today’s economic indicators include Japan’s retail sales and industrial production at 8:50, and at 9:00, New Zealand’sANZ Business Confidence, at 10:30 China’s Manufacturing/Services PMI, at 14:00 Japan’s Housing Starts, at 15:00 Germany’s Retail Sales and the UK’s Real GDP, at 16:00 Switzerland’s KOF Leading Index and Thailand’s Current Account Balance,at 21:00: Germany’s Consumer Price Index and South Africa’s Trade Balance; at 22:45: the U.S. Chicago Purchasing Managers’ Index; and at 26:55: remarks by Fed Chair Powell. We should pay close attention to the movement of the GBP/JPY pair, which fluctuated by just under 6 yen in a single day following the results of the LDP leadership election.