Should We Keep an Eye on the Upside Potential for the Pound, Which Has Strengthened Against the U.S. Dollar?
18.02.2025
- Australia and New Zealand (RBNZ) Policy Rate and Statement Announcement
- Canada: Consumer Price Index
In the U.S. currency market yesterday, 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 fell short of 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-period simple moving average (SMA) continues, and on the daily chart, prices are falling as the 75-period 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 on the downside by the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the uptrend along the 10-period moving average (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 action 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, RBA Governor Block will hold a press conference at 13:30, and at 16:00, the UK will releaseILO Unemployment Rate, UK Employment Statistics, and Sweden’s Consumer Price Index; at 16:30, Switzerland’s Industrial Production; at 16:45, France’s Consumer Price Index; at 17:30, Hong Kong’s Employment Statistics; at 18:30, South Africa’s Employment Statistics;remarks by UK BOE Governor Bailey; at 19:00, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index; at 22:30, the Canadian Consumer Price Index and the U.S. NY Fed Manufacturing Index; and at 24:00, the U.S. NAHB Housing Price Index.We want to carefully assess the upside potential for the pound, which has been strengthening against the U.S. dollar.
Author: Keisuke Sakurai
