Should We Wait and See How Far the Pound Will Rise?
07.01.2025
- Housing Prices in Halifax, UK
- Canada: Trade Balance
In U.S. currency trading the previous day, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 108.714 to 110.008. The trend followed the +2σ line of the hourly Bollinger Bands.On the 4-hour chart, candlesticks have extended as far as the +3σ level of the Bollinger Bands, while on the daily chart, the 20-day moving average (20MA) 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. The GBP/USD pair rose from 1.2413 to 1.2550. It broke significantly above the upper resistance zone formed by the 200-period SMA on the hourly chart with a solid candlestick.On the 4-hour chart, the price has extended just below the 75-period moving average, and on the daily chart, the RSI—which had fallen to around 30—has recovered to 46. We will monitor the situation closely to see if the pound’s rally gains momentum during European trading hours.
Today’s schedule includes the UK Halifax House Price Index at 16:00, the Swiss Consumer Price Index at 16:30, the French Consumer Price Index at 16:45, and the UKConstruction PMI, at 19:00 the Eurozone Consumer Price Index and Eurozone Unemployment Rate, at 22:00 remarks by Barkin, President of the Richmond Fed, at 22:30 Canada’s Trade Balance and the U.S. Trade Balance,at 24:00: Canada’s Ivey PMI and the U.S. ISM Non-Manufacturing Index, U.S. JOLTS Job Openings, and at 27:00: the U.S. 10-year Treasury auction. I intend to cautiously monitor the upside potential of the pound, which has risen.
Author: Keisuke Sakurai
