Will the weakened pound see a rebound? Stay tuned.

Will the weakened pound see a rebound? Stay tuned.

23.01.2025

In the U.S. currency market yesterday, the U.S. dollar rose against the yen. The USD/JPY pair traded between 155.358 and 156.702. It rose after finding support at the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price reversed upon touching the 200-period simple moving average (SMA), and on the daily chart, it is trading above the 20-period moving average (MA). The U.S. dollar is also showing gains during today’s Asian trading session.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.2376 to 1.2307.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price has pulled back from the +2σ level of the Bollinger Bands, and on the daily chart, the 20-period MA is acting as a resistance level, capping the upside. We will need to watch closely to see if the pound’s weakness continues during today’s European trading session.

Today’s schedule includes Japan’s trade balance (customs-based) at 8:50, Singapore’s Consumer Price Index at 14:00, Turkey’s Consumer Confidence Index at 16:00, and France’sBusiness Sentiment Index at 14:00, Taiwan’s Industrial Production at 17:00, Norway’s Deposit Rates at 18:00, Turkey’s TCMB Policy Rate and Statement at 20:00, U.S. Initial Jobless Claims and Canada’s Retail Sales at 22:30,at 24:00: Eurozone Consumer Confidence Index; at 25:00: U.S. Weekly Crude Oil Inventories; and remarks by U.S. President Trump are scheduled. We’ll be watching to see if the weakened pound stages a rebound.