Will the market wait and see how much further the pound can rise?
07.01.2025
- Housing Prices in Halifax, UK
- Canada's Trade Balance
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. The trend followed 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 (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.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, 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 and 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 pound, which has risen.
Author: Keisuke Sakurai
