Should we wait and see how much further the pound will rise?

Should we wait and see how much further the pound will rise?

07.01.2025

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 108.714 to 110.008. A trend was observed along the +2σ line of the hourly Bollinger Bands.On the 4-hour chart, the candlesticks have extended beyond the +3σ line of the Bollinger Bands, while on the daily chart, the 20-day moving average (MA) is acting as support, causing prices to reverse. We will be closely monitoring price movements during U.S. trading hours to see if the Canadian dollar’s momentum continues.

Among European currencies, the pound rose against the U.S. dollar.GBP/USD rose from 1.2413 to 1.2550. The price broke significantly above the upper resistance zone of the 200-period SMA on the hourly chart with a solid candle. On the 4-hour chart, the price has extended just below the 75-period MA, and on the daily chart, the RSI, which had fallen to around 30, has recovered to 46. We will monitor the situation to see if the pound’s rally gains momentum during European trading hours.

Today’s schedule includes the UK Halifax House Price Index at 4:00 PM, the Swiss Consumer Price Index at 4:30 PM, the French Consumer Price Index at 4:45 PM, the UK Construction PMI at 6:30 PM, the Eurozone Consumer Price Index and Unemployment Rate at 7:00 PM, and at 10:00 PM, remarks by U.S. Federal Reserve Governor Barkin:Remarks by Richmond Fed President Barkin, at 10:30 PM: Canada’s trade balance and the U.S. trade balance, at 12:00 AM: Canada’s Ivey PMI and the U.S. ISM Non-Manufacturing PMI, U.S. JOLTS job openings, and at 3:00 AM: the U.S. 10-year Treasury auction. I intend to cautiously monitor the upside potential of the rising pound.

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