Market participants are likely to keep a close eye on the upside potential of the pound, which has been strengthening against the U.S. dollar.

Market participants are likely to keep a close eye on the upside potential of the pound, which has been strengthening against the U.S. dollar.

18.02.2025

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s January housing starts—released yesterday—rose slightly from 231,500 in the previous month to 239,700, but failed to meet market expectations. The CAD/JPY pair fell from 107.432 to 106.662. A downtrend was observed along the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the pullback from the 200-SMA continues, and on the daily chart, prices are falling as the 75-MA acts as a resistance level.

Among European currencies, the pound rose against the U.S. dollar for the fourth consecutive day. The GBP/USD pair traded between 1.2569 and 1.2634. The pair rose, supported by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the uptrend along the 10-period MA continues, and on the daily chart, the pair has broken above the 75-period MA line, which had previously acted as resistance. We will be watching price movements during U.S. trading hours to see if the pound can maintain its momentum.

Today, the RBA will announce its policy rate and statement at 12:30 p.m. (AEST), followed by a press conference with RBA Governor Block at 1:30 p.m. (AEST). At 4:00 p.m. (AEST), the UK will release its ILO unemployment rate and employment statistics, along with Sweden’s Consumer Price Index. At 4:30 p.m. (AEST), Switzerland will release its industrial production figures, and at 4:45 p.m. (AEST), France will release itsCPI, at 5:30 PM Hong Kong employment data, at 6:30 PM South African employment data and remarks by Bank of England Governor Bailey, at 7:00 PM the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index, at 10:30 PM the Canadian CPI and the U.S. NY Fed Manufacturing Index, and at midnight the U.S. NAHB Housing Price Index.We want to carefully assess the upside potential for the pound, which has been strengthening against the US dollar.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed