Watch for a possible rebound in the weakened pound

Watch for a possible rebound in the weakened pound

23.01.2025

In yesterday's U.S. currency trading, 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 MA. The U.S. dollar continues to rise 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 line 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 whether the pound’s weakness continues during today’s European trading session.

Today, Japan’s trade balance (customs-cleared basis) is scheduled for 8:50, Singapore’s Consumer Price Index for 14:00, Turkey’s Consumer Confidence Index for 16:00, France’s Business Sentiment Index for 16:45, Taiwan’s Industrial Production for 17:00, and Norway’s deposit rates for 18:00.at 8:00 PM, Turkey’s TCMB policy rate and statement; at 10:30 PM, U.S. initial jobless claims and Canada’s retail sales; at midnight, the Eurozone’s consumer confidence index; and at 1:00 AM, U.S. weekly crude oil inventories, as well as remarks by U.S. President Trump. We will be watching to see if the weakened pound sees a rebound.