All Eyes on Whether the Pound, Now at Its Weakest, Has Room to Rebound
08.04.2025
- Canada-Ivey Purchasing Managers' Index
- Japan's Balance of Payments
In the U.S. currency market the previous day, the U.S. dollar traded in a seesaw pattern against the euro.The EUR/USD pair traded between 1.0882 and 1.1049, with price action fluctuating around the 20-period moving average (MA) on the hourly chart. While the 4-hour chart shows the pair entering a triangle consolidation pattern with both the upper and lower boundaries narrowing, the daily chart indicates that the uptrend above the 10-period MA remains intact.
Among European currencies, the pound was the weakest during U.S. trading hours. The GBP/USD pair fell from 1.2933 to 1.2710. A downtrend was observed along the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the price has closed below the 200-period simple moving average (SMA), which had appeared to be acting as support, and on the daily chart, the RSI has plummeted from 70 to 40. We will need to monitor price action during U.S. trading hours to see if the pound’s momentum continues to weaken.
Today’s economic indicators include Japan’s Balance of Payments at 8:50, Australia’s Westpac Consumer Confidence Index at 9:30, Australia’s NAB Business Confidence Index at 10:30, Japan’s Economic Watchers Survey at 14:00, France’strade balance and current account balance, at 19:00 the U.S. NFIB Small Business Optimism Index, at 23:00 the Canadian Ivey Purchasing Managers’ Index, at 25:00 remarks by BOE Deputy Governor Lombardelli, and at 26:00 a U.S. 3-year Treasury auction.We will be watching for signs of a rebound in the pound, which has hit a new low.
Author: Keisuke Sakurai
