Investors should watch for further downside potential in the pound, which has fallen sharply against the yen
07.04.2025
- Japan Economic Sentiment Index
- Germany: Industrial Production
Last weekend, the U.S. dollar rose against the euro despite the fact that average hourly earnings in the U.S. March employment report, released on the 4th, fell to 3.8% year-over-year from 4.0% the previous month.The EUR/USD pair fell from 1.1107 to 1.0926. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the RSI has begun to decline from 79, and on the daily chart, a divergence has been observed between the candlesticks and the RSI.
Among European currencies, the pound continued to decline against the yen. The GBP/JPY pair fell from 191.750 to 187.611. The decline followed the 20-period moving average on the hourly chart. On the 4-hour chart, the price moved along the -2σ line of the Bollinger Bands, and on the daily chart, it temporarily broke through the -3σ line. We will be watching closely to see if the pound continues to weaken at the start of the week.
Today’s economic indicators include Japan’s Monthly Labor Survey—Total Cash Wages at 8:30 a.m., Japan’s Economic Sentiment Index at 2:00 p.m., Germany’sIndustrial Production, Germany’s Trade Balance, and the UK’s Halifax House Price Index at 15:00; Eurozone Retail Sales at 18:00; remarks by Fed Governor Kuehler at 23:30; and U.S. Consumer Credit at 28:00. We should watch for further downside potential in the pound, which has fallen sharply against the yen.
Author: Keisuke Sakurai
