Should We Keep a Close Eye on the Pound-Yen’s Rebound After a Drop of About 3.5 Yen?
01.11.2024
- Australia's Producer Price Index
- U.S. ISM Manufacturing Index
In the U.S. currency market yesterday, the U.S. dollar fell against the euro after the September U.S. PCE deflator, released yesterday, declined to 2.1% year-over-year from the previous month’s 2.2%, while the core deflator remained flat year-over-year.The EUR/USD pair rose from 1.0844 to 1.0888. The price rose in line with the 20-period moving average (MA) on the hourly chart. Similar price action was observed on the 4-hour chart, and on the daily chart, the RSI is rising from the 30 level.
Among European currencies, the pound remained the weakest for the second day in a row. The pound-yen pair fell from 198.890 to 195.351, representing a yen appreciation of approximately 3.5 yen.On the 4-hour chart, the price has broken below the 75-MA support line with a real body candle, and on the daily chart, the price has fallen from the +2σ Bollinger Band to the centerline; therefore, we will be watching closely to see if the pound rebounds during European trading hours.
Today’s schedule includes South Korea’s trade balance at 9:00, Indonesia’s Manufacturing PMI, Malaysia’s Manufacturing PMI, and Australia’s Producer Price Index at 9:30, China’s Caixin Manufacturing PMI at 10:45, the UK’s Nationwide House Price Index and Turkey’s Manufacturing PMI at 16:00,at 4:30 p.m., the Swiss Consumer Price Index; at 5:30 p.m., the Swiss Manufacturing PMI; at 9:30 p.m., the U.S. Employment Report; at 10:45 p.m., the U.S. PMI Purchasing Managers’ Index and remarks by Logan,remarks by Logan, President of the Dallas Fed; at 23:00, the U.S. ISM Manufacturing Index and U.S. Construction Spending are scheduled. We will be closely monitoring the rebound potential of the GBP/JPY pair, which has fallen by approximately 3.5 yen.
Author: Keisuke Sakurai
