All eyes are on whether the pound, which has shown signs of a rebound, will sustain its gains

All eyes are on whether the pound, which has shown signs of a rebound, will continue to rise

14.01.2025

In the previous day’s U.S. currency trading, the dollar saw a seesaw battle against the yen. The USD/JPY pair traded between 156.917 and 157.956. The market lacked direction, fluctuating around the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the 75-period moving average is providing support on the downside, while on the daily chart, the pair is trading without falling below the 20-period moving average, which serves as the benchmark for the current uptrend. We will be watching to see if the relative strength between the U.S. and Japanese markets becomes clearer during U.S. trading hours.

Among European currencies, the pound rebounded against the U.S. dollar. The GBP/USD pair fell from 1.2213 to 1.2101, dropping to its lowest level since November 2023. Although the downtrend along the 10-period moving average on the hourly chart had continued, the pair staged a significant rebound during U.S. trading hours and ultimately closed with a bullish candle featuring a lower wick. We will need to keep a close eye on price movements during U.S. trading hours to see if the pound’s rebound momentum holds.

Today’s economic indicators include the Australian Westpac Consumer Confidence Index at 8:30, Japan’s Balance of Payments at 8:50, Thailand’s Consumer Confidence Index at 12:45, Japan’s Tankan Survey at 14:00, and India’sWholesale Price Index at 16:45, France’s Budget Balance at 16:45, the U.S. NFIB Small Business Optimism Index at 20:00, Russia’s Foreign Exchange Reserves at 22:00, the U.S. Producer Price Index at 22:30, and South Korea’s Employment Statistics at 8:00 the following day. We will be watching the price action closely to see if the pound, which has shown signs of a rebound, can sustain its gains.